Domestic companies see gross refining margins nosedive in December quarter

More hit expected in March quarter

Indian refiners saw gross refining margins (GRMs) nosedive in the quarter ended December 2018, as inventory losses piled up. Benchmark GRMs also took a hit and are expected to remain weak for one more quarter.

For the quarter under review, GRMs for state-owned refiners more than halved from what they were a year ago. 

For private refiners like Reliance Industries (RIL), the hit was lower at 24 per cent. Mangalore Refinery and Petrochemicals (MRPL) was the worst hit with a negative GRM of $0.64 per barrel.

The reason for the fall in GRMs for domestic refiners is a combination of