Petrol and diesel price hikes turn marketing margin positive for OMCs
New Delhi: Petrol and diesel prices have risen by a little more than Rs 2 per litre in four days, turning net fuel marketing margin positive for oil companies. Petrol and diesel prices rose by 40 paise and 45 paise a litre, respectively, on Wednesday. Price hikes in the last four days totalled Rs 2.14 for petrol and Rs 2.23 for diesel. On Wednesday, the retail prices for petrol and diesel were Rs 73.40 and Rs 71.62 per litre in Delhi. In Mumbai, petrol was sold for Rs 80.40 and diesel for Rs 70.35 per litre.
“Net auto fuel marketing margins are back in the black at Rs 0.2/litre from minus Rs 1.28/litre on 6 Jun’20 due to retail price hike of Rs 1.74-1.78/litre in the last three days,” brokerage ICICI SecuritiesNSE -1.72 % said in a note on Tuesday. “While retail price hikes are encouraging, a further price hike of Rs 5.5/litre (7-8%) is needed if the net margin is to recover to Rs 1.19/litre on 1 July’20.” Crude oil prices have doubled to $40 a barrel from its lows in late April, pushing up rates for petrol and diesel as well.
