Oil Marketing Companies capex spending may fall by a third

NEW DELHI: The impact of the Covid-19 lockdown on petroleum demand is set to substantially dent the earnings of Oil Marketing Companies (OMC) and may result in capital expenditure being slashed by nearly a third this financial year.

According to global ratings firm Fitch Ratings, the standalone credit profiles of India’s State-run OMCs are at “greater risk of downward revision due to the coronavirus-induced drop in demand and refining margins, and their continued investments”.