While weak GRMs will hurt oil marketing companies (OMCs), high retail and marketing margins will offset that impact.
Going forward, if these trends persist, OMCs could see strong profits. One potential issue may be government intervention to reduce retail prices ahead of the Maharashtra state election.
While this would restrict profits if crude prices stay down, it would lead to losses for OMCs if crude bounces back. While benchmark Brent dropped below $70/bbl, the Singapore GRM fell to $2/bbl from an average of $6/bbl in 2024 till date. The decline was due to fall in petrol and diesel refining margins, which fell from averages of $15/bbl and $19/bbl to below $10/bbl. Brent was earlier estimated to average $84/bbl in FY25, but demand weakness and possible production increases from OPEC-plus (after December 2024) could keep prices down.
Esta historia es de la edición October 16, 2024 de Business Standard.
Comience su prueba gratuita de Magzter GOLD de 7 días para acceder a miles de historias premium seleccionadas y a más de 9,000 revistas y periódicos.
Ya eres suscriptor ? Conectar
Esta historia es de la edición October 16, 2024 de Business Standard.
Comience su prueba gratuita de Magzter GOLD de 7 días para acceder a miles de historias premium seleccionadas y a más de 9,000 revistas y periódicos.
Ya eres suscriptor? Conectar
Ratan Tata: Picture perfect
Politeness is to human nature What Warmth is to Wax.
I chose DLF over Disneyland dream, says KP Singh
KP SPEAK: Gurugram remains a developing city; urban planning needs a long-term vision, the PM must set up a high-powered panel for it
REDISCOVERY OF INDIA
Indian collectors are reclaiming Colonial-era art created by foreigners as an intrinsic part ofthe country's history
Go for fund with large AUM, high credit quality and low cost
Liquid funds have offered an average return of 7.28 per cent over the past year.
Auto majors in slow lane on weak demand
TaMo, Maruti, SMIL stocks down up to 23% in 4 weeks; analysts say downside risk limited, an opportunity for long-term investors
Volume growth for NMDC to remain robust in H2FY25
NMDC's revenue in Q2FY25 came in at ₹4,900 crore (a rise of 23 per cent year-on-year or Y-o-Y), while it was down 9 per cent quarter-on-quarter (Q-o-Q).
CIEL HR to file draft papers for ₹450 cr IPO
CIEL HR Services (CIEL), which uses technology to provide human resources solutions, will soon file draft papers for an initial public offering (IPO) estimated to be around ₹450 crore in size, according to sources.
Angel funds see red in Sebi's new accredited investors-only proposal
The Securities and Exchange Board of India's (Sebi's) proposal to allow only \"accredited investors\" to invest in angel funds has raised concerns in some quarters, even as most fund managers believe the overall ecosystem was set for a boost.
CLSA does U-turn on China, ups India exposure after Trump win
Says India seen as more attractive investment destination due to its strong economic growth and relatively low exposure to trade risks
Unfazed by mkt fall, largecap, flexicap MF schemes shine in Oct
Both categories saw all-time-high inflows during the month
