The recent slump in global crude oil prices has trimmed the inventory gains for Oil Marketing Companies in the second quarter of fiscal 2021 but has also boosted their gross refining margins (GRM). It is likely to push auto fuel marketing margins up.
OMCs’ core GRM is up to $4.4-4.7 per bbl in September to date boosted by a surge in refinery transfer price (RTP) based cracks.
ICICI Securities estimates OMCs’ Q2-till date core GRM at $1.7-2.5 per bbl and that including crude inventory gain at $3.2-6.5 per bbl.
“GRM recovery is driven by oil price fall and throughput cuts. US refinery utilization was down to 71.8% due to hurricane-related shutdowns.