Oil marketing firms: Gross refining margin, demand remain under pressure

Q4 numbers were boosted by inventory gains

The Q4 results of HPCL, IOC, and Reliance Industries (RIL) give us an idea of where the energy markets are headed. All three registered large inventory gains; all three saw a decline in finance costs; all three firms experienced margin pressure and low demand. And the conversion of oxygen capacity for medical use will impact production in Q1FY22.

India has heavy dependence on imports for over 80 per cent of crude consumption and 30 per cent of gas consumption. Globally, crude prices had risen over 20 per cent in Q4FY21. While current prices are in the range of $64 per barrel