FE
After a strong H1FY24, the operating profits of the state-owned oil marketing companies — IOC, BPCL and HPCL– may fall significantly on quarter in the October-December period (Q3FY24) owing to inventory losses and lower gross refining margins, as per analysts.
According to Emkay Global, OMC’s diesel marketing margins fell to negative Rs 0.5 per litre, while petrol margins improved by 20% to Rs 6.8 per litre in the third quarter of FY24. “Brent averaged at around $84 per barrel in Q3FY24, down 3% on quarter, closing around $19 per barrel lower at $78/bbl between the two quarter ends, thereby resulting in refining inventory losses of $2.5-3 per barrel for OMCs,” the firm said.
