Stable fuel prices to drive operating profit for OMCs over 50%, capex to hit Rs 90,000 crore: Crisil Ratings

Oil marketing companies (OMCs) are poised for a sharp rebound, with operating profits expected to surge more than 50% to $18-20 per barrel this fiscal year. Crisil Ratings said the growth is driven by stronger marketing margins amid stable retail fuel prices and supportive crude oil dynamics.

OMCs generate revenue through two core businesses — refining and marketing. They earn gross refining margin (GRM) from converting crude into fuel and marketing margin from selling petrol, diesel and other petroleum products.