OMC's IOC, BPCL, & HPCL could cross Rs 10,000 cr mark in losses

While the prices of crude oil rose, the prices of diesel and petrol remained unrevised which caused marketing losses that affected solid refining margins, according to media reports.

Currently, these state-owned oil and natural gas companies control 90 percent of the retail diesel and petrol sales in India.

Although the margins have been huge in converting crude oil to petrol and diesel, the marketing section accrued losses due to unrevised fuel, as per media reports.

ICICI Securities said the OMC's are losing Rs 12-14 per litre on petrol and diesel, which offsets the solid refining performance during quarter one.

"We estimate gross refining margins (GRMs) to remain fairly strong at USD 17-18 per barrel levels (factoring in inventory loss of USD 0.1-0.2 a barrel) and marketing volume growth of 17-20 per cent, thanks to continued recovery in prospects and a weaker base," the brokerage said as per media reports.

Yet, the sharply higher retail losses in petrol and diesel will "drive an EBITDA loss of Rs 6,600 crore and a net loss of Rs 10,700 crore for the OMCs in Q1FY23E (April-June quarter of 2022-23 fiscal)," it said according to media reports.

In a respite to cover marketing losses, crude oil dipped in the last two to three days and as a result; similar effect spread in key products too, The ET reported.