OMC marketing margins improve in December after extended period of decline

Lower global crude prices, higher gross refining margins have driven overall marketing margins upwards

After a long period of decline, the marketing margins of India's state-owned oil majors have begun to improve in December, and are set to continue on an upward trajectory, analysts believe.

The blended marketing margin for petrol and diesel reached a 10-month high of Rs 2.4 per litre on December 13, according to a note issued by ICICI Securities.

This is in stark contrast to the first eight months of the ongoing financial year, when oil marketing companies (OMCs) were hurt by pump prices that remained unchanged amid the volatility in global crude oil prices and supply costs, said a report by