New Delhi [India], September 30 (ANI): With crude prices going down, oil marketing companies (OMCs) are making huge profits by selling petrol and diesel.
A recent report by ICRA says that OMCs like Indian Oil, Hindustan Petroleum and Bharat Petroleum are making a profit of Rs 15/litre on petrol and Rs 12/litre on diesel.
“ICRA estimates that the OMCs’ net realisation was higher by Rs.15/litre for petrol and Rs.12/litre for diesel vis-a-vis international product prices in September 2024 (till September 17). The retail selling price (RSPs) of these fuels have been unchanged since March 2024 (Rs. 2/litre was reduced on petrol and diesel on March 15,2024),” says Girishkumar Kadam, Senior Vice President and Group Head – Corporate Ratings, ICRA.
The marketing margins of OMCs have improved significantly as crude prices have declined significantly in recent months. ICRA report too supports the view.
“The marketing margins on retail sales of auto fuels for the Indian oil marketing companies (OMCs) have improved in recent weeks with the reduction in crude prices” said ICRA.
Experts suggest with such hefty marketing margins OMCs have sufficient room to pass these profits to the consumers by reducing the prices of petrol and diesel.
Earlier, the Ministry of Petroleum and Natural Gas also acknowledged that the state-owned oil marketing companies (OMCs) have had a fabulous financial year 2023-24.
The ministry also noted that the combined profit of OMCs for FY 2023-24 stood at Rs 86,000 crore, over 25 times higher than the extraordinarily difficult previous fiscal year.
For the full 2023-24 fiscal, HPCL (Hindustan Petroleum) reported a record net profit of Rs 16,014 crore as opposed to a loss of Rs 6,980 crore in the previous year.
IOCL (Indian Oil) capped an excellent year with historically best refinery throughput, sales volume and net profit.
BPCL’s profit after tax for FY 2023-24 came in at Rs 26,673 crores, nearly 13 times higher than the previous fiscal year.
Additionally, the company’s planned capital outlay of Rs 1.7 lakh crores over 5 years under ‘Project Aspire’ underlines its commitment to creating long-term value for shareholders. (ANI)
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