Pet Coke: IndianOil concludes e-auctions for intrastate consumers

Indian Oil Corporation Ltd. (IOC), the country’s second-largest producer of petroleum coke, has conducted online auctions of RPC (Raw Petroleum Coke) from its various refineries on 2^nd and 3^rd Sep’20 for intrastate consumers.

Results of the auctions are enumerated as follows:

Market Commentaries

Market participants have indicated that the primary reason for nil response at Digboi refinery can be attributed to poor quality of the product.

Although such complaint does not normally arise with IndianOil, the current auction at IOC’s Barauni refinery has also seen low participation with most buyers citing degraded quality of material being produced consistently for last few months, with particular reference to Silicon (Si) content.

Key Highlights

i. Outside-state auctions for the leftover quantities have been scheduled on 8 Sep’20 for both Barauni and Koyali refineries, and on 7 Sep’20 for Digboi refinery.

ii. Delivery periods for both within-state and outside-state e-auctions are for 45 days. Accordingly, intrastate dispatches will commence from 4 Sep’20 till 18 Oct’20, while for outside-state it will be from 10 Sep’20 to 24 Oct’20.

iii. Outside state bidders are required to make pre-bid earnest money deposit (EMD) payments as per terms of the auctions. Eligible bidders are required to submit their EMD amounts to IndianOil’s e-auction service provider, MSTC Ltd.