Oil Surge Hit GRM, Marketing Margins, But Led To Inventory Gain, Says ICICI Securities
Oil drips from the nozzle of a fuel pump hose. (Photographer: Andrey Rudakov/Bloomberg)

Oil Surge Hit GRM, Marketing Margins, But Led To Inventory Gain, Says ICICI Securities

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.

ICICI Securities Report

In November 2020, petroleum product consumption was down 3.7% YoY.

Diesel consumption too fell 6.9% YoY during the same month and 5% YoY in December 1 to 15, 2020, but petrol was up 5.1% YoY in November and 9.5% YoY in December 1 to 15.

Refinery utilisation surged to 101% in November 2020 versus 87% in October 2020 with month-on-month output rise being 2.5 million metric tonne while consumption was flat month-on-month. This meant rise in product inventory.

The oil price surge from end-Oct-20 lows has hit both gross refining margins and auto fuel net marketing margins (may fall to below Rs 1/litre in January 2021).

Click on the attachment to read the full report:

ICICI Securities OMCs FY21 trends tracker .pdf


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