An effective treasury strategy may be faced with various obstacles. Some of the most common issues in the oil and gas refining and marketing space are:

• Dollarized nature of earnings and its impact on rupee cash flows
• Pricing mismatch risk- timing of pricing-out of products at refinery gate and pricing-in of crude purchases
• Locking in the rupee value of refining margins
• Cash flow stability for debt servicing and investment obligations
• Adequately addressing basis risk in the commodity pricing cycle
• Sustaining a negative working capital cycle through efficient management of financial supply chain
• Aligning cash flow and accounting risk through adoption of
  AS-30/IAS-39