Rising crude oil prices may impact margins of oil marketing companies: ICRA

The surge in international crude oil price could have a mixed impact on oil public sector companies, and an improvement in the refining margins is expected due to increasing demand, but marketing margins may be compressed, ICRA said Wednesday.

“Unless the Centre and state governments cut the excise and VAT (value-added tax) rates, public sector oil marketing companies would be constrained in passing on further price hikes in the retail market,” it said in a note.