 "As Brent crude price trades below $70 per barrel, analysts are backing aviation and tyre stocks and are cautious about paints and oil marketing companies (OMCs). “Oil prices are down over 20 per cent from their recent peak and bode well for sectors")
At the India Energy Week, an interaction between analysts and the Minister of Petroleum and Natural Gas (MoPNG), Hardeep Singh Puri, and Secretary, MoPNG, Pankaj Jain outlined the challenges for Oil Marketing Companies or OMCs.
Pricing freedom is not likely and while the Ministry will push for LPG compensation, entire under-recovery is unlikely to be compensated. There is also a focus on increasing OMCs petrochemical integration which means large capex at a time of weak earnings. Moreover, several projects have been delayed, implying longer time to production.
Despite no financial year 2026 (FY26) budget provisions, OMCs may be partially compensated
