Record high margins on fuel sales cut OMCs debt
MUMBAI: Retail prices of fuel have touched an all-time high, and so have the marketing margins of oil marketing companies–Indian Oil Corp. Ltd. (IOCL), Bharat Petroleum Corporation (BPCL) and Hindustan Petroleum Corporation (HPCL)–strengthening their profitability and trimming debt.
As of now, daily gross marketing margin on diesel/petrol stands at over Rs3 per litre.
“Even as retail prices for auto fuels in India touch record highs, OMCs are earning marketing margins of ₹2.8-3.6 per liter on petrol-diesel (higher than their long-term average of ₹3 per liter) due to regular price hikes,” said Motilal Oswal in a 22 February note.
