Tuesday, January 19, 2021

Petrol, diesel price may rise further as Oilcos protect marketing margins

- Advertisement -

Higher Petroleum Taxes Rescue Govt’s Biggest Ever Economic PackageNew Delhi, Nov 28 (IANS) Petrol and diesel prices may have risen in eight of the past nine days, but further price hikes would be needed to keep auto fuel marketing margins of oil retailers high, experts have said.

High marketing margins is required by oil companies to maintain profitability in a market where global oil prices are firming up while refining margins are shrinking.

According to a report by ICICI Securities, auto fuel net marketing margin is has remained at comfortable levels of Rs 4.2 per litre in current financial year (FY21) till date. It has been Rs 3.34 per litre in Q3FY21- till date and Rs 3.59 a litre on November 25, 2020.

READ ALSO:  Capital needed for banking licence may be doubled if RBI accepts recommendations

However, a rise in international auto fuel prices would have meant net margin fall to Rs 1.05 per litre on December 1 and a negative (-) Rs 0.45 per litre on December 16.

“Further price hikes are required and we are hopeful of the same to ensure net margins remain at Rs 2.0-2.5 a litre,” the brokerage said in its report.

If the oil companies are following this principle of keeping up marketing margin Rs over Rs 2 per litre, petrol and diesel prices could see an increase by that level over next few days. This would mean that auto fuel prices would continue its daily price increase momentum for some more time.

READ ALSO:  India-China military talks end in stalemate, dialogue to continue

A good thing from the current envelop me to is that, OMCs would also gain substantially from inventory in a rising market. It is estimated OMCs’ product inventory gain at Rs 450 to 880 crore in Q3-till date.

READ ALSO:  Films become monotonous after a certain point: Janhvi


India Updates
India Updates is an independent news & Information website. Follow us for regular updates on News and Information.

Follow Us On

Related News


Please enter your comment!
Please enter your name here

Trending Topics In India

Covid 19 India Updates

Trending News In India

Trending Showbiz

Trending Sports

Latest Trending News In India

Covid-19 vax: WHO warns of ‘catastrophic moral failure’

Geneva, Jan 19 (IANS) The world faces a "catastrophic moral failure" because of unequal Covid-19 vaccine policies, the head of the World Health Organization...

SC asks Centre to share policy for declaring public holidays

New Delhi, Jan 18 (IANS):The Supreme Court on Monday asked the Centre to share its policy for declaring public holidays. The observation was made...

Talks between govt, farmer leaders postponed to Jan 20

New Delhi, Jan 19 (IANS) The Union Ministry of Agriculture and Farmers Welfare on Monday said that the meeting between a group of ministers...

Stalin first choice for CM’s post in Tamil Nadu

New Delhi, Jan 18 (IANS) DMK's M.K. Stalin is the first choice of the people of Tamil Nadu for the post of Chief Minister...