Regular hike in fuel prices, no regular hike in our margins: MK Surana, HPCL
In a chat with ET Now, MK Surana, CMD, HPCL , says that there was a increase in the crude price and the international product prices so accordingly it is being passed on regularly to the consumers depending on the international prices.
ET Now: Shed some light on the issue of MDR charges on debit cards?
The MDR charges on debit cards will not be passed on to consumers. They will not charge anything on the MDR charges on debit cards.
ET Now: What about credit cards because a lot of people who would be filling fuel via credit cards is this only restricted to debit cards?
Yes, credit cards is arrangement between the consumers and the bank.
ET Now: What is the percentage of your total sales how much is digital or how much is via credit cards or debit cards?
The majority is debit cards, actually majority is not credit cards as far as the fuels are concerned so the ratio is almost 1 to 10. The total digital transaction is more than 30% of the transaction happens on this digital mode like cards and wallets etc. and this has gradually increased over a period of time before let us before November it used to be in the range of 10% or so now it is more than 30% almost.
ET Now: Are you saying that almost 30% of your total sales or 30% of your only retail sales are in cards?
I am talking about the totals, the bulk sales anyway happens through the non-cash mode only.
ET Now: Tell us a little bit more about then the overall business environment because there have been regular hikes in your margins which are healthy right now after the sharp spike in crude what about it this were to actually reverse and if we were to see a bit of a cool off come in crude prices?
There is no regular hike in our margins, there is a regular hike in prices if there is a increase in the crude prices and the international prices. There was a increase in the crude price and the international product prices so accordingly it is being passed on regularly to the consumers depending on the international prices on day to day basis which are tracked. So the current trend was on the increasing side but it has been hovering in the range bound manner between $50 to $55, if you remember just two days back it was down 3% again it went back a little bit. So it will move in a range for the time being and accordingly day to day basis we track this international prices and accordingly the retail prices are worked out and on 15-fortnightly basis it is passed on.
ET Now: There is a talk that oil, OMCs will be coming out with the much higher dividend than last year now that is possibly why because your profits have gone higher but is there a talk that you could be coming out with the dividend which could be out of routine earnings jump?
There is no decision yet on that and anyway it has to be approved by the boards and as and when we take any decision we will let you know.
ET Now: You are in talks with foreign suppliers for gas at LNG terminal?
We are trying to expand our gas business and we are in discussion with various gas suppliers to that effect in the international market. Basically gas supply licence for certain cities and we also need gas for our refinery consumption so we do contract some of the gas and accordingly we discuss with the commercial terms with the various international suppliers.