Indian Oil Marketing Companies are expected to see a reduction in operational losses in the third quarter of financial year 2023 due to lower marketing losses and higher gross refining margins as global disruption in crude oil supplies continues.
Blended marketing margins for petrol and diesel began to recover from late November, with margins reaching a 10-month high of INR 2.5 per liter in December. Record-high GRMs in financial year 2023 have partially offset losses in the marketing segment.
Indian Oil Marketing Companies are expected to see blended marketing profits of approximately INR 1.5 per liter in the fourth quarter of financial year 2023.
Indian refiners' earnings have also increased due to the reduction in the supply of refined products and lower export of petroleum products from China.
However, logistics issues continue to be a major concern for the incumbents due to the stand-off between Western nations and Russia.
As per ICICI Securities, the operational losses are estimated to be around INR 7,200 crore in the third quarter of financial year 2023. The combined operating loss for the refiners in the marketing segment is expected to be around INR 31,500 crore in financial year 2023.
