#1Indian Oil Corporation Limited Investor Presentation June 2017 इंडियन ऑयल IndianOil#2Indian Oil Corporation: The Future of India Energy (इंडियन ऑयल IndianOil Strong Support from the Government of India Largest Refiner in the Country Pan-India Pipeline Infrastructure इंडियन ऑयल Leading Market Share Across Portfolio Maharatna Company; Gol Control: 57.34% Government nominated Directors on IOC Board Contribution to exchequer of INR 1,79,014 Crin FY17 11 refineries with 80.7 MMTPA Capacity 35% of Domestic Refining Capacity 12,700+ km pipelines for crude oil and products with a total capacity of 93.7 MMTPA 48% share in crude and product pipeline (by length) 45.1% petroleum market share in FY17 with over 46,500 touch points Integrated Operations Across the entire Energy Value Chain 2nd largest domestic player in Petrochemicals E&P: 8 domestic and 9 overseas blocks Strong Focus on Innovation Through R&D and Alternate Energy Sources Driven by a Management Team That has Delivered Results Overall 554 patents as on 31.03.2017 • New focus on Alternate and Renewable Energy (Wind, Solar, Biofuels, Nuclear) Consistent growth and profitability FY11-FY17 Revenue CAGR: 6.59% Note: Company Filings and Petroleum Planning and Analysis Cell (http://ppac.org.in/). सत्यमेव जयते Indience Debt/Equity of 0.55x (as on Mar 31, 2017) 2#3Our Journey at a Glance From a humble beginning to an Oil Giant FY17 (इंडियन ऑयल IndianOil 31-Mar-17 500000 400000 4,45,373 120000.00 Turnover (INR/Cr) 99729 100000.00 80000.00 Net Worth (INR/Cr) 300000 60000.00 200000 40000.00 78 100000 20000.00 0.00 0 1965 1965 1975 1975 1985 1995 2005 2015 1985 Net Worth 1995 2005 2015 Source: Company Filings MMT 11.6x Refining Capacity Kms (000) 81 6.5x Pipeline Network Turnover US$ in Billion 13 CAGR: 15% 68.7 36 24 12 7 7 5 4 2 14.5 2.7 0.1 0.7 1970 1980 1990 2000 2017 1970 1980 1990 2000 2017 1970 1980 1990 2000 2017 MOODY'S Fitch Ratings "MAHARATNA" Status "Maharatna" status Contribution to Exchequer: US$ 28 Bn (FY17) Note: IOC is ranked 14th as per Platt Global Energy Company Rankings 2016. IOC is ranked 161 amongst Fortune Global 500 Companies in 2016. Fortune Global 500 Ranking: 161 (2016) platts Platts Energy Ranking: 14 (2016) Moody's: Baa3 Fitch: BBB- 3#4Well Poised to Leverage Strong Industry Dynamics (इंडियन ऑयल IndianOil India is Among the World's Fastest Growing Economies Low per Capita Oil Consumption Represents an Underpenetrated Opportunity... Consumption in million barrel per day GDP 2015 2016 2017 P 2018 P Growth 19.53 India 7.9% 6.8% 7.2% 7.7% China 6.9% 6.7% 6.6% 6.2% 12.53 11.12 ASEAN-5 4.8% 4.9% 5.0% 5.2% 4.12 3.74 Brazil (3.8%) (3.6%) 0.2% 1.7% Russia (2.8%) (0.2%) 1.4% 1.4% US EU China Japan India Source: IMF World Economic Outlook, April 2017 (GDP at constant Prices) ASEAN-5: Indonesia, Malaysia, Philippines, Thailand & Vietnam Source: CIA World Fact book (2014 & 2015 Est.).-as per website on 30 May 2017 MMT Oil Consumption Trends Have Been Rising Marginally... ...With Strong Growth in Consumption Across Key Products CAGR 5.57% 194 185 166 6.30% 157 158 148 ill FY 12 FY 13 FY 14 FY 15 FY16 FY17E Source: Petroleum Planning and Analysis Cell, Ministry of Petroleum and Natural Gas, Govt. of India. Diesel (HSD) FY18 FY22 E CAGR 8.23% Note: HSD: High Speed Diesel and MS: Motor Spirit Source: Petroleum Planning and Analysis Cell Petrol (MS)#5IOC - The Largest Refiner in India Strategic Presence With Access to High Demand Markets Leader in Refining Market Share(1) Koyali Panipat Mathura Chennai Narimanam Bongaigaon Barauni Guwahati Haldia Paradip Digboi Strategically placed with access to high demand market of North India Note: Figures as of March 31, 2017 Importing Crude from Across the Globe North America 0.23% Middle East 66.3% Africa 28.13% Central Asia 1.50% Total crude oil im port: 63.79 MMT (including 7.74 MMT for CPCL) Figures for FYE 2017 Capacity(69.2 MMT) Subsidiary Cos. (11.5 MMT) South East Asia 3.84% Source: Company Filing (इंडियन ऑयल IndianOil 35% 26% 10% 13% 9% 7% IOC Reliance Note: Figures as of March 31, 2017. HPCL BPCL Essar Oil ONGC Source: PPAC website (1) Market share based on group Refining Capacity Refinery Throughput (MMT) Capacity Utilization* (%) 105 104 65 54 57 99 FY 15 FY 16 FY 17 78.8 FY 15 FY 16 *Excluding Paradip Refinery FY 17 Source: Company Filing Steady Distillate Yields* (%) 80.6 79.3 FY 15 *Excluding Paradip Refinery FY 16 FY 17 Source: Company Filing Changing Crude Mix for Enhanced Profitability Type of Crude Oil Used High Sulphur 52% Low Sulphur 48% ✓ Producing Euro IV grade fuels ✓ Preparing for Euro VI FY 17 Note: All figures for the year ended March 31 of the respective years. Source: Company Filing 5#6- Paradip Refinery – Modern Marvel (इंडियन ऑयल IndianOil 700 KTA PP Plant: Petchem Initiation at Paradip Anchor tenant of Paradip PCPIR Turning Odisha into Energy Gateway of East India Rs. 34,555 crore Investment Further Downstream Projects in Odisha 15 MMTPA Capacity India's Largest PSU Refinery 6#7Paradip Refinery Project - Salient Features Paradip Refinery: Augmenting IOC's Capacity Capacity 15 MMPTA (इंडियन ऑयल IndianOil INDMAX Unit Product: LPG, PROPYLENE, MS & DIESEL COMPONENT Licenser: 10C-R&D ■ One of the most modern refineries: ■ 100% HS including 40% Heavy ■ Nelson Complexity Factor - 12.2 ■ Product Slate : ■ MS 25%, HSD 38%, ATF/SKO 13%, LPG 5%, Petcoke 8% ■ Distillate Yield - 81% ■ Even with high percentage of heavy crudes Energy Index - 50 MBN Among the best in the industry Source: Company Filing 7#8Unparalleled Network of Cross Country Pipelines (इंडियन ऑयल IndianOil Largest Pipeline Market Share - Downstream Others, 27% IOC, 73% Others, 51% IOC, 49% Others, 44% IOC, 56% Crude Oil Pipelines Product Pipelines Source: PPAC Website MMT Total Pipelines % 94 70 118 High Capacity Utilization 99 94 73 69 125 FY 15 FY 16 ■Crude ■ Product ☐ Source: Company Filing Note: Figures as of March 31, 2017 Pipelines Throughput 83 80 76 29 31 28 48 51 FY 15 FY 16 ■Crude ■ Product 51 FY 17 ☐ Indicate Total Throughput Source: Company Filing In US$ millions 119 FY 17 Indicate Total Capacity Utilization Steady Revenue Stream with healthy EBITDA 925 945 846 764 FY'14 FY'15 FY'16 FY'17 ■EBITDA All annual figures for the year ended March 31 of the respective years. USD-INR:64.8550 (as on Mar 31, 2017) 8#9Extensive Network of Cross Country Pipelines (इंडियन ऑयल IndianOil As on March 31 2017 Jalandhar Sangrur Bhatinda OA Ambala Roorkee Najibabad Panipat Meerut Rewari Delhi Dadri Length (KM) Capacity Crude Oil Pipelines 5,217 48.60 MMTPA Product Pipelines 7,491 45.09 MMTPA Gas Pipelines 140 9.5 MMSCMD (1) Total 12,848 Tinsukia Numaligarh Digboi Sanganer Mathura Baitalpur Ajmer Q Tundla Chaksu Lucknow Motihari Bongaigaon Jodhpur Bharatpur QMuzaffarpur Siliguri Guwahati Kot Kanpur Patna Barauni Chittaurgarh Sidhpur Mundra Ahmedabad Rajbandh/ Durgapur Kandla Viramgam Vadinar OKolkata AFS Mourigram Koyali Ratlam Dahej Korba Ranchi Haldia Hazira Raipur Paradip Berhampur Hyderabad Vizag Rajahmundry Vijaywada Bangalore Chennai Bangalore AFS Ennore Asanur Chennai AFS Sankari CBR Trichy Madurai Legend Crude Oil Pipeline Product Pipeline Ongoing Product Pipeline Gas Pipeline Refinery 9#10Marketing: Reach in Every Part of the Country (इंडियन ऑयल IndianOil Pan India Presence with Multiple Consumer Touch Points Others 326(1) SKO / LDO Dealerships 3,904 Over 46,500 Customer touch-points Retail Outlets 26,212 All figures for the year ended March 31, 2017 Leader in Market Infrastructure LPG Distributor 49% 51% 56% 9,570 Bulk Consumer Pumps 6,520 51% 49% 44% Retail Outlets LPG Distributorships Aviation Fuel Stations Indian Oil Others Source: Company Filing Source: Company Filing & PPAC Website Other Key Highlights Operating Highlights (Inland / Export Mix) Rural Thrust and Penetration ✓ 7,051 Kisan Sevak Kendras (KSK) LPG 76.5 80.7 3.6 3.7 Sales (MMT) 83.5 4.8 Supply to over 99 million households 77.1 78.6 72.8 Petroleum Product Market Share 45.1% share in petroleum products Note: (1) Others includes Aviation Fuel Stations, Terminals, Depots and LPG Bottling Plants. Source: Company Filing FY 15 FY 16 FY 17 ■ Inland ■ Export 10 Source: Company Filing#11Domestic POL Sales (MMT) Unparallel Sales 76.5 68.5* 80.7 72.6 Overall IndianOil Sales 83.5 MMT 74.1 LPG 9.2 10.1 8.4 Naphtha 9.5 10.1 MS 8.4 Η ATF 4.6 3.6 4.7 SKO 35.8 35.4 34.5 2.7 3.1 3.3 2014-15 2015-16 2016-17 *As per old methodology Highest-ever Sales Maintaining Leadership with 45.1% Market Share HSD FO/LSHS Bitumen Lubes Others (इंडियन ऑयल IndianOil#12Diversified Customer Base & Renowned Brands (इंडियन ऑयल IndianOil Branded Products SERVO 100% PERFORMANCE. EVERYTIME. XTRAPREMIUM autogas Diversified Products & Brands Indane SAFE RELIABLE CONVENIENT Branded Services Swagat Comforts & Vehicle care EXPERIENCE THE ECO-DRIVE XTRAMILE SUPER DIESEL PROPEL 100% TRUST. 100% VALUE. A range of petrochemicals from IndianDil KISAN SEVA KENDRA XTRA care -Fuels and More- इंडियन ऑयल इंडियन ऑयल XTRAREWARDS XTRA REWARDS. XTRA VALUE IndianOil Aviation IndianOil Our ground work takes you sky high RAILV WAYS Diversified Customer Base नेशनल फर्टिलाइज़र्स लिमिटेड एन.एफ.एल. NATIONAL FERTILIZERS LIMITED . एअर इंडिया AIR INDIA Empowering 10/40 कोल Nurturing India. इण्डिया Coal India Nature Life Enabling XTRAPOWER FLEET CARD CONVENIENT, SECURE & REWARDING. पावरग्रिड एससी 3175 SCI इंडियन ऑयल IndianOil डीजल IndianOll नूवन लालटेन नूतन ल्य किताब कापी 31-4 11914 Hat Kisan Seva Kendra outlets for extending rural reach Retail Outlet at Boat house The turnover growth is insulated from the cyclical demand fluctuations due to diversified customer base 12#13E&P Domestic Overseas Operatorship Moving Beyond the Traditional Value Chain (इंडियन ऑयल IndianOil Gas Sourcing Marketing LNG Terminals CGD Moving Beyond the Value Chain Petrochemicals • LAB • PX / PTA • Polymers, Glycols • Butadiene, SBR RE&SD Wind, Solar Biofuels Sustainability Nuclear JV with NPCIL 01 Globalization Exports Consultancy Training Downstream Marketing 13#14IndianOil One of the Leading Producer of Petrochemical Products (इंडियन ऑयल Capacity Sales Breakup (in INR/Cr) Project Capacity (MT) Capex (US$mn) Total: 23080 Total: 19297 Total: 20273 1741 Guajarat LAB 120,000 175 1894 1416 1960 1730 2035 Styrene Butadiene 120 KTA 150 14685 Rubber Plant 12315 12210 Panipat Px/PTA 553,000 508 Panipat Naphtha 1,460,000 2337 Cracker 3236 2576 1524 1030 2835 1463 FY 15 FY 16 FY 17 ■LAB ■Px/PTA ■Polymers ■MEG/DEG/TEG Others Source: Company Filing EBITDA (in INR/Cr) 2,036 3,420 6,067 7,590 FY 14 FY 15 FY 16 FY17 Source: Company Filing 14 14#15Backward Integration Through E&P IOC: E&P Capabilities Stake in 17 exploration blocks 8 Domestic blocks - With ONGC/OIL/GAIL/GSPC - Status of Domestic and Overseas Blocks Total 8 Blocks Total 9 Blocks Including 2 Coal Bed Methane blocks with U. Development, 3 Production, 5 ONGC (20% participating interest) ■ 9 International blocks Libya (1), Yemen (1), Nigeria (1), Gabon (1), Venezuela (1), USA (1), Canada (1) and Russia (2) © MR All figures as on March 31, 2017 Source: Company Filing A view of the drilling site at IOC Khambat 1 Appraisal, 3 U. Development, 1 (इंडियन ऑयल IndianOil Exploration, 1 Discovery, 1 Domestic Blocks Discovery, 3 Overseas Blocks ■Discovery Exploration Appraisal Under Development Production All figures as on March 31, 2017 Recent Developments on E&P Increasing Equity Oil and Gas Production. New Asset Taken stakes in Vankor and Taas Yuryakh (Roseneft's Russian Assets). Both are producing Assets. 15#16Vankor US$ 598 million invested (till 31.03.2017) Russian Asset Acquisition Vankor: Today's Behemoth Reserves Production Consortium Stake 331 MMT 21 MMTPA 23.9% IndianOil Stake 8% Taas: Tomorrow's Star (इंडियन ऑयल IndianOil Production Reserves 196 MMT 1 MMTPA 5 MMTPA Peak Envisaged Consortium Stake IndianOil Stake 29.9% 10% Investment Approval for $1.23 billion Taas US$ 408 million invested (till 31.03.2017) 16#17Diversified Across Geographies and Energy Sources (इंडियन ऑयल IndianOil Geographical Diversification IndianOil Mauritius retail business Ltd. (IOML) (100% Stake) Aviation, terminal & 24,000 MT Storage Terminal Market Share: 24% Lanka IOC Storage, terminal & Plc. retail business (75.1% 200 retail outlets Stake) Market Share 43.5% IOC Middle East FZE (100% Stake) Marketing of Lubes Lanka O Gas Diversification Across Sources JV for City Gas Distribution with presence in 9 Cities 5 MMTPA LNG import, storage and re- gassification terminal under construction at Ennore (Near Chennai) Ennore -Tuticorin Pipeline (1175 km) Wind Power Wind 167.60 installed capacity • 21 MW plant at Gujarat; • 48.3 MW plant at AP Solar Note: Other overseas subsidiaries include IOC Sweden AB, IOC (USA) Inc.and Ind Oil Global B.V. Netherland (facilitating overseas upstream operations Figures for the year ended March 31,2017 · 72.3 MW plant at Rajasthan 6000+ solar PV systems installed at Retail Outlets. Total installed capacity 24 MW (Mar'17). ⚫ Other installed Solar PV capacity is 20 MW Source: Company Filing 17#18Strong Focus on Research and Development (इंडियन ऑयल IndianOil INDMAX Diesel Hydro treating Naphtha Isomerization Technology Focus on Products & Technology developed to Indane NANOCUT LPG maximize light distillates from refinery residue • Commercialized 1.2 MMTPA grass-root DHDT facility in Bongaigaon Railroad Oils Retrofitting of Bongaigaon refinery for producing Euro-III/ IV motor spirit Marine Oils Fuel Efficient • Commercialization Engine Oils of R&D developed fuel efficient engine oil for gasoline & diesel car Hot Rolling Oils Hi-therm cutting gas LPG based metal • Improved efficiency and safety standards 1st in India to introduce multi- grade railroad oil to Indian Railways significant fuel and oil savings - • One of six companies to develop "OEM Approved Marine Technology Equipment" Commercialization of R&D developed energy efficient hot rolling oil in association with RDCIS in steel plants Collaborations LanzaTech Game-changing technology for Conversion of CO₂ to value added products 2 Vito vision on technology Conversion of Carbon dioxide to chemicals Active Patents Portfolio As on March 31, 2017 By Geography By Division 51 244 228 9% 34% 188 44% 41% Investments in Research & Development Indalin: Technology for conversion of naphtha to light olefins, LPG & aromatic rich gasoline; feasibility under study Delayed Coking: Thermal cracking technology for conversion of long/short residue to distillates. Partnership with Engineers India Limited Octamax: Technology for dimerization of cracked C4 to high octane (RON) component for Euro IV/V gasoline 275 50% 22% FCC Catalyst Additives: CO - Combustion promoter, Coke Reduction Additive, Residue Upgradation Additive for bottom Upgradation 122 India USA Others ■Lubes ■Refineries ■ Others DHDS/DHDT Catalysts: Demonstrated at CPCL for ULSD in 2009. Partnership with Sud-Chemie India Limited (SCIL) Total Patents: 554 Vegetable Oil co-processing in DHDT: Successful technology demonstrated in 2013 including demetallation of vegetable oil Source: Company Filing 18#19INDMAX - A New Era INDMAX: INDane MAXimization IndianOil R&D's "Make In India" Initiative Indigenously developed technology to bridge India's LPG Deficit Over 2 times LPG yield over regular FCC Flexibility to cater to Seasonal Demand: LPG/MS/ HSD Mode High Octane MS (97-98 RON) production INDMAX unit being installed at Bongaigaon refinery as well (इंडियन ऑयल IndianOil 19#20R&D Prowess Technology Commercialisation (इंडियन ऑयल IndianOil 35 TMTPA INDAdept Plant at Guwahati Refinery Indigenous In-Line Pipeline Inspection Tool Indigenously Developed Delayed Coker at Barauni 2nd R&D Campus - Upscaling Thrust Areas Refining Technology CO₂ Research Pipeline Catalysts Research IndianOil R&D of Tomorrow Alternate Energy Research Lubes Technology Nanotech New generation of Lead Acid Battery trials underway#21Major Ongoing Projects Investing In Future Growth Planned Capital Expenditure Outlay (2017-18) (INR/Cr.) Estimated Cost Project Polypropylene unit at Paradip. (Rs Crore) Others, 3500 3,150 Refining, 4559 Coker at Haldia 3,076 BS-VI Projects 15,411 INDMAX unit at Bongaigaon 2,582 E&P, 2482 Paradip-Hyderabad Pipeline 2,321 Pipelines, 1890 Major approved Capex Plans Petchem, 1209 Project Estimated Cost (Rs Crore) Ennore Tuticorin Natural Gas Pipeline 4,497 Marketing, 5988 Koyali Ahmednagar - Solapur Pipeline 1,967 - Phase IV of Retail Automation 1,338 Capex planned for 2017-18, approx INR 19,628 Cr Haldia Barauni Product Pipeline 1,038 (इंडियन ऑयल IndianOil 21 Source: Company Filing#22Experienced Management Team & GOI Ownership and Support Sanjiv Singh Chairman Management Team 35+ Year Experience A K Sharma Director (Finance) 32+ Year Experience Verghese Cherian Director (HR) 32+ Year Experience Anish Agarwal Director (Pipelines) 36+ Year Experience B S Canth Director (Marketing) 32+ Year Experience G K Satish Director (Planning & Business Development) 30+ Year Experience Dr. SSV Ramakumar Director (R&D) 30+ Year Experience Handled all aspects of refining activities. Previously headed the refinery division. Also worked with centre for High technology and with Nigeria Petroleum National Company. Chemical engineer from IIT Roorkee Handled various assignments in finance functions. Was at the forefront of treasury operations to raise funds for IOC. Credited for issuing the first ever foreign currency bonds of Indian Oil in the international market. Chartered Accountant (CA) by profession. Also possesses law degree. Possesses a rich and comprehensive experience in human resource discipline in various positions at Indian Oil. Also headed IPM, an apex training centre of Indian Oil Post graduate in Social Work (MSW). Has held various important portfolios in Pipelines, and has worked in various disciplines like operations, maintenance, engineering services, projects, etc. Electronics engineer from Punjab Engineering college and Executive MBA from MDI, Gurgaon. Has held several key portfolios including sales, operations, human resources etc. Has made significant contribution as a member of Retail Advisory Committee. PG in Personal Management & Industrial Relations and a Law graduate. Has experience in varied areas of business including International Trade, Business Development, Natural Gas, Marketing Operations, Logistics and Human Resources. A Graduate in Mechanical Engineering from the NIT Surat, and a Post-Graduate in Management from MDI, Gurgaon. Has three decades of R&D experience downstream hydrocarbons sector, notably in in the areas of refinery process research streams A doctorate in Chemistry from IIT-Roorkee Contribution to Exchequer (in INR/Cr) 98326 FY 15 1,32,064 FY 16 1,79,014 ( इंडियन ऑयल IndianOil FY 17 Source: Company Filing Strong Support From the Government of India Two government nominated director on board of directors Performance: Annual MoU with Government of India Government Approval for Capital Raising इंडियन ऑयल IndianOil Pricing: Select petroleum products based on Government initiative Board Control: Members nominated to IOC Board Functional Directors: Appointment by President of India 22 22#234,14,919 Our Differentiators: Strong Financials Turnover (in INR/Cr) 4,57,571 4,50,756 4,06,828 4,45,373 Petchem 21% FY 13 FY 14 FY 15 FY 16 FY 17 Pipelines 17% 30% Net Profit (in INR/Cr) and Dividends (%) 30% 30% 33% 7,019 5,005 5,273 11,242 48% 19,106 EBITDA (%) Others 7% Contribution to FY17 EBITDA EBITDA (in INR/Cr) 19,023 17,284 14,291 Refining 37% Marketing 18% 23,371 (इंडियन ऑयल IndianOil 35,990 FY 13 FY 14 FY 15 FY 16 FY17 FY 13 FY 14 FY 15 FY 16 FY 17 Exchange Rate 1 USD = INR 64.8550 Dividend Payout Ratio (% of PAT) Source: All figures Company Filing 23#24Our Differentiators: Strong Financials Net Worth (in INR/Cr) 99,729 88,134 65,992 67,970 61,124 Cash breakdown & Debt (in US$ billions) 0.1 3.7 2.9 0.0 $13.3 $12.5 1.5 00 0.1 1.2 1.6 2.1 1.8 1.9 1.4 $8.5 $8.2 $8.5 1.8 FY 13 FY 14 FY 15 FY 16 FY17 FY 13 1.32x 1.31x Debt/Equity 0.81x 0.60x 0.55x FY 13 FY 14 FY 15 FY 16 FY17 (1) Special Oil Bonds received from Government of India in lieu of compensation till the year FY 2009. 3.8 4.0 FY 14 FY 15 ■Total Debt ■Special Oil Bonds ■Cash Equivalents 3.8 FY 16 2.8 FY 17 ■Market Value of Investments ■Amount Recoverable from Govt. Reduction in Debt Level (INR/Cr) 86,263 80,894 3.9 55,248 52,880 54,820 FY 13 FY 14 FY 15 FY 16 FY17 (इंडियन ऑयल IndianOil Source: All figures Company Filing 24#25Conclusion India's Largest Oil Company 1 Largest Refiner in the Country 2 Pan-India Pipeline Infrastructure 3 (इंडियन ऑयल IndianOil ...Focused on Creating Shareholder Value Leading Market Share Across the Portfolio 4 • Integrated Operations Across the entire Energy Value Chain 5 Strong Focus on Innovation Through R&D and Alternate Energy Sources 6 Driven by a Management Team That has Delivered Results 7 With Strong Support from the Government of India 25 25#26Key Risk Factors (इंडियन ऑयल IndianOil •Fluctuations in commodity prices (e.g. crude oil) Fluctuation in exchange rates (INR - US$) Fluctuations in global petroleum product prices 26