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OMCs' high marketing margins to now face high crude, election test

Margins may go back to Re 1 or Rs 1.5 a litre, if the oil marketing companies aren't able to pass on the crude price hike to the consumer

OMCs' high marketing margins to now face high crude, election test
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Amritha Pillay Mumbai
The marketing margins for oil marketing companies (OMCs) in financial year 2017-18 were estimated to be at their best since 2014-15. Most of the gains have trickled in from the June quarter of the last financial year, coinciding with the introduction of daily price revision for fuel sold at the petrol pumps. These margins now face the risk of erosion due to a combination of high crude prices and state elections going forward. “Marketing margins were healthy for OMCs in FY18, as crude was range-bound for most of the year, daily pricing was adapted and there was not much disruption

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First Published: Apr 28 2018 | 11:40 PM IST

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