Operating profit of OMCs to rise over 50% to $18-20 per barrel: Crisil

Oil marketing companies (OMCs) are expected to see their operating profit grow more than 50% to $18-20 per barrel this financial year from around $12 last financial year. This is driven by stronger marketing margin on account of stable retail fuel prices and favourable crude oil dynamics, Crisil Ratings said on Friday.

OMCs earn from two businesses—refining and marketing. In refining, they earn gross refining margin (GRM) and in marketing, they earn from margin on petrol, diesel and other petroleum products sold.