Reliance Industries Ltd (RIL) raised prices of at least seven key petrochemicals in the last quarter to offset higher crude oil prices and counter the effect of a weakening rupee. Bulk chemicals traders, suppliers for RIL’s petrochemical products and analysts tracking the company said it raised prices by 10-21% in the second quarter of this fiscal while year-on-year increase is 17-61%.
These products include purified terephthalic acid (PTA), monoethylene glycol (MEG), polyester staple fibre (PSF), partially oriented yarn (POY), polypropylene or high density polyethylene (HDPE) and linear alkyl benzene (LAB).
“Its more about the rupee decline and crude price which have increased petrochemicals prices in Asia. There is not much change in terms of demand-supply. Besides, RIL commands the highest premium in the Indian petrochemicals market. If you see pricing for RIL’s key products, it has been consistently going up in past three months,” an analyst tracking RIL said on condition of anonymity.