Middle East can beat India in race to become global hub

Given the infirmity in logistics and high import tariffs in the Indian oil refining industry, the Middle East will gradually outdo India in terms of developing potential refining hubs in Asia, says a study conducted by Shell Global Solutions International.

The study points out that the lower capex for refinery in India over other potential hubs compensates for weaknesses on logistics. it also says that India is cost competitive vis-a-vis other potential export refining centres. However, being cost competitive is not enough if markets are blocked by product import tariffs and only domestic refineries are cost competitive.

FinancialExpress