OMCs

Blended marketing margins rose to a 10-month high of about Rs 2.5 per litre in December, multiple analysts said

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The installation is expected to be completed by March 2024

While prices sustaining lower levels is crucial, Govt actions are also a key monitorable given the forthcoming elections in 2024

OMCs are likely to see weak earnings in current fiscal year despite fall in oil prices mainly because of losses they incurred on holding prices in the first half, Moody's Investors Service said

Public sector OMCs reported cumulative losses of Rs. 27,276 crore during the first six months of FY23

OMCs export surplus petrol and diesel to other countries only after meeting domestic demand in the country

Lower global crude prices, higher gross refining margins have driven overall marketing margins upwards

Fear of worsening economic slowdown in China has dealt the latest blow to global crude oil, with daily prices falling to their lowest since January 4, 2022

Their expectation is based on the recent action in October by the OPEC of cutting production by 2 million barrels per day. This suggests that the OPEC is looking to defend price, they said

PSU oil companies are losing a net Rs 4 per litre on diesel while their margins have turned positive on petrol, Oil Minister Hardeep Singh Puri said on Wednesday on talks of a price reduction in the offing as international rates have softened. Puri said his ministry will seek assistance for the three fuel retailers - Indian Oil Corporation (IOC), Bharat Petroleum Corporation Ltd (BPCL) and Hindustan Petroleum Corporation Ltd (HPCL) for the losses they incurred on holding petrol and diesel prices since the Ukraine war to help the government fight inflation. "OMCs (oil marketing companies) still have under-recoveries on diesel," he told reporters when asked if there is a price reduction in the offing. The three firms held prices despite international oil prices shooting up to more than a decade high. The under-recovery - difference between the retail selling price and the international rate - currently is about Rs 27 per litre on diesel but the actual cash loss (the loss based on the

The government has been implementing EBP, where OMCs sell petrol blended with ethanol up to 10 per cent

This will help them tide over continuing losses in providing domestic liquified petroleum gas

Stocks to Watch: Abrdn, formerly Standard Life, is looking to sell 2 per cent of its stake in private sector insurer HDFC Life via block trades on Tuesday

From 2011, the Centre instead brought the costs upfront as explicit petroleum subsidies shown in the Budget

The under-recoveries suffered by OMCs are around Rs 20-25 a litre for diesel and Rs 14-18 a litre for petrol, said sources.

Fitch cited that robust core refining margins as well as windfall inventory gains should allow OMCs to mitigate potential marketing losses in the near term

Many more price hikes though required to return to positive margins; moderate valuations offer some comfort

Even if Moscow relents and sells oil for rupees to India, European insurers may be reluctant to underwrite; in any case a bigger Russian tilt would involve a larger financial switch by New Delhi

While Russia's invasion of Ukraine doesn't quite throw Budget 2022 out the window yet, it does mean the fiscal maths will need a significant re-look.