State-owned OMCs' fortunes take a turn

Every 25 paise a litre decline in automobile fuel margin could alter analysts' FY19 earnings estimates for IOC, BPCL and HPCL by 5-10%

In the September quarter, oil marketing companies (OMCs) had benefited from the spike in gross refining margins (GRMs), as well as marketing margins, and inventory gains. In the current quarter, however, they are finding more challenges.

The benchmark Singapore GRMs had surged to a 10-quarter high in the September quarter, the second one (Q2) of this financial year. This was on the back of supply disruptions caused by Cyclone Harvey in the US. At $8.3 a barrel, the GRMs were up 29 per cent sequentially and 61 per cent over a year.

However, by mid-November (the latest data available), these