Domestic oil marketing firms make profit as global rates ease

Oil marketing firms profits again from selling fuel because domestic prices are locked while global rates have decreased according to reports.

The reports say, Indian Oil, Hindustan Petroleum, and Bharat Petroleum are estimated to have made an average margin of Rs 1.2 per litre on the retail sale of petrol and diesel so far in the current quarter, as opposed to losses of Rs 3 per litre from the October-December quarter and Rs 8.9 per litre from the April-December period. The average marketing margin for petrol and diesel is predicted to be Rs 3.4 per litre in the third week of February.

According to the brokerage, businesses have so far lost Rs 1.2 per litre on the sale of fuel during the current quarter. Nonetheless, the brokerage claimed that a profit of Rs 6.8 per litre on petrol has made the combined margin for the two fuels positive.

Around 2.5 times as much diesel is sold in the nation as there is petrol. Except to account for duty changes, domestic prices for gasoline and diesel have been stable for nearly a year, as per the report.

Depending on how much the marketing segment contributes to earnings, the three oil marketing businesses will be affected differently by the good marketing margins.