Refining margins of state-run oil marketing companies fall this fiscal
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Subscribe to enjoy similar stories. New Delhi: Gross refining margins (GRM) of public sector oil marketing companies (OMCs) have fallen by up to 80% in the first half of this financial year, showed data from the Petroleum Planning & Analysis Cell (PPAC), amid shrinking discounts of Russian oil and declining prices in global markets, experts said. Mangalore Refinery and Petrochemicals Ltd, a public sector enterprise under the Union petroleum ministry and a subsidiary of Oil and Natural Gas Corp.
Ltd (ONGC), reported the biggest fall in its refining margins, which declined 80.17% to $2.56 per barrel during the April-September period from $12.91 in the same period last fiscal. Also read | Oil marketing companies eye a strong Q3, but LPG could be a dealbreaker The GRM of Chennai Petroleum Corp. Ltd, a group company of state-run Indian Oil Corp.
Ltd (IOCL) fell 71.66% to $2.93 per barrel from $10.34 in the same one-year period, showed the reported titled Monthly Ready Reckoner for November. Although domestic demand for petroleum products has been robust, the global trend has been subdued due to weak demand by China, the second largest importer of crude oil, leading to a fall in crack spreads globally. Crack spreads are the price difference between a barrel of crude oil and the petroleum products refined from it.
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