If the current decline in crude oil prices continues, it will lead to healthy marketing margins for downstream companies in the future.
State-run oil marketing downstream companies posted weak earnings in the first quarter of the current fiscal after prolonged volatility in crude oil prices.
Analysts expect a drop in retail prices of petrol and diesel as prices are still within range.
The country’s three largest oil and gas majors, Indian Oil Corporation, Bharat Petroleum Corporation and Hindustan Petroleum Corporation, had a poor first quarter of FY25 due to shrinking refining margins. Also, the company’s marketing margin has come down sharply due to lower fuel prices. For the first time since April 2022, state-owned oil marketing companies have earlier reduced the price of motor fuel by Rs 2 per litre.
WTI crude prices fell to $67 a barrel on Sunday, while Brent prices were at $71 a barrel.
