Falling crude: State-run OMCs may report Q4 inventory loss of Rs 33,000 crore
India’s three state-run oil marketing companies (OMCs) — IOCL, HPCL and BPCL — could among themselves report massive inventory — crude and products — losses of around Rs 33,000 crore in Q4FY20 because of a precipitous fall in crude prices through the quarter, according to analysts.
Somewhat strong gross refining margins before the lockdown that stunted demand helped these firms in the quarter to salvage the situation a bit, yet they could all be in the red in the quarter. Also, one of the analysts said these firms might see a plunge in gross refining margins (GRMs) in the April-June period (Q1FY21) because of the demand destruction.
