OMCs feel the heat of increasing competition

GST impact and pending merger of oil PSUs add to that concern

Shares of government oil marketing companies (OMCs) — Indian Oil Corporation (IOC), Bharat Petroleum Corporation (BPCL) and Hindustan Petroleum Corporation (HPCL) — lost three to five per cent on Thursday. This came on worries of higher competitive pressures from private players, which could lead to a loss in market share and marketing margins for the three companies. 

The government has invited Reliance Industries and BP to invest in retail outlets. While the OMC network, with about 55,000 stations, is still unmatched and cannot be replicated overnight, private players are gradually adding new stations and gaining market share. 

The private players doubled their