Operational losses of OMCs expected to shrink in Q3, say analysts

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

After two tight quarters of profit-margin shrinkage due to global volatility, Indian oil-marketing companies (OMCs) are expected to see reduction in operational losses in the October-December quarter (third quarter, or Q3) of 2022-23 (FY23), observed analysts.

This will come about as a result of lower marketing losses and higher gross refining margins (GRMs) as global disruption in crude oil supplies continues, they added.

From late November onwards, blended marketing margins for petrol and diesel have begun to recover. Margins rose to a 10-month high of about Rs 2.5 per litre in December, said analysts.

The marketing margin on petrol has