Analysts see a ray of hope for oil marketing firms after a difficult Q2

Although the Indian crude basket fell from an average of $109.5 per barrel in Q1 to an average of $97.87 a barrel in Q2, prices remained high in absolute terms

The public sector undertaking (PSU) oil marketing companies (OMC) like Indian Oil Corporation (IOC), Bharat Petroleum Corporation (BPCL) and Hindustan Petroleum Corporation (HPCL; where ONGC holds controlling stake) had a difficult September quarter for the 2022-23 financial year (Q2FY23) contending with high international crude and gas prices and low gross refining margins or GRMs (Singapore). Although the Indian crude basket fell from an average of $109.5 per barrel in Q1FY23 to an average of $97.87 a barrel in Q2FY23, prices remained high in absolute terms. International gas prices remained very high.
 

For BPCL, the reported GRM was better than estimated