Record GRMs offset fuel under-recoveries for oil companies

A higher gross refining margin of over $20 per barrel is helping oil marketing companies, public and private, offset the under-recoveries – ₹10 per litre on petrol and ₹22-25 per litre on diesel – that they are incurring by not increasing fuel prices, executives from these companies said.

Gross refining margin or GRM is what a company makes from turning every barrel of crude to fuel. A change of $1 per barrel in the benchmark petrol and diesel price makes an impact of 0.48 paise per litre on margin.