With retail prices of petrol and diesel remaining unchanged since March 16 despite falling crude prices, auto fuel margins of state-run oil marketing companies (OMC) nearly tripled to Rs 14.72 per litre in the same period, analysts noted. Even though fuel-sale volumes remained as low as the current levels (down 60% year-on-year) throughout the quarter, if such marketing margins are sustained, ICICI Securities estimated that gross profit (on retail fuel sales) of the OMCs in Q1FY21 would be around Rs 20,000 crore (Indian Oil: Rs 9,550 crore, Bharat Petroleum: Rs 5,480 crore and Hindustan Petroleum: Rs 4,980 crore). This is about 60% more than the corresponding period in FY20.
