Tailwinds for oil marketing companies in India as margins remain robust

Downstream businesses like the oil marketing companies (OMCs) and gas players gain

Crude and gas prices have dipped and OPEC-plus is hiking supply, bringing cheers to India which is a massive energy importer. Downstream businesses like the oil marketing companies (OMCs) and gas players will gain the most from this cheap energy.

 

For OMCs, cheaper oil and gas equate to better margins.

 

OMCs such as Bharat Petroleum (BPCL), Hindustan Petroleum (HPCL) and Indian Oil (IOCL) reported strong gross refining margins (GRMs) and marketing margins in the fourth quarter of the financial year 2025 (Q4FY25).

 

They are still experiencing under-recoveries on gas, but this may reduce in