Daijiworld Media Network – New Delhi

New Delhi, Jul 23: State-owned Bharat Petroleum Corporation Ltd (BPCL) has indicated that retail fuel prices may be revised upwards if international crude oil prices remain above USD 90 per barrel, as rising global prices continue to put pressure on the company's finances.

Speaking to Business Standard, BPCL Director (Finance) Vetsa Ramakrishna Gupta said the company was closely monitoring the crude oil market before taking a decision on revising petrol and diesel prices.

"Fuel prices require revision based on current crude prices. For now, we will wait to see whether crude stabilises at this level or comes down. The current surge appears temporary. If it escalates further, there will definitely be an upward revision. When crude oil goes beyond USD 80 per barrel, it puts stress on our balance sheet," Gupta said.

Global crude oil prices have climbed sharply to around USD 95 per barrel from nearly USD 72 earlier this month following the collapse of the US-Iran ceasefire and renewed concerns over supply disruptions through the Strait of Hormuz and the Red Sea.

To strengthen energy security amid the uncertain geopolitical situation, BPCL is considering signing a long-term crude oil supply agreement with the United States by the end of 2026.

The proposed contract is expected to cover the annual supply of around 2 million barrels of crude oil. At present, BPCL procures crude from the US through spot market purchases.

The company is also exploring the possibility of entering into long-term supply agreements with Venezuela and Angola, subject to favourable commercial terms and pricing.

BPCL's plans come as Indian oil refiners seek to diversify crude oil sources and reduce supply risks amid continuing geopolitical tensions in West Asia and volatility in global energy markets.