Marketing Margins – An Elixir For OMCs, Says Motilal Oswal
Oil drips from the nozzle of a fuel pump hose. (Photographer: Andrey Rudakov/Bloomberg)

Marketing Margins – An Elixir For OMCs, Says Motilal Oswal

BQ Blue’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer BloombergQuint’s subscribers an opportunity to expand their understanding of companies, sectors and the economy.

Motilal Oswal Report

The Covid-19 outbreak has brought about huge volatility in the Oil and Gas space, resulting in highly unpredictable margins.

Refiners continue to face the longest stretch of poor refining margins. Although, for oil marketing companies, marketing margins have truly been an elixir.

Retail auto fuel prices in India have reached all-time highs, thus restricting gross marketing margins to Rs 1.7–2.7/litre (versus Rs 4.5–5/litre in Q3 FY21).

However, gross marketing margins in FY21 to-date still average Rs 6.5–7/litre (well above the long-term average of approximately Rs 3/litre).

Click on the attachment to read the full report:

Motilal Oswal Oil&Gas Sector Update.pdf

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