Petrol had held up better until last week, with Investec estimating marketing margins at ₹7 a litre. However, petrol forms a smaller share of OMCs’ volumes. Rising crude means petrol cracks are swinging violently, and with a lack of pricing levers at the pump to protect downside, the math is set to change. Petrol margins may well have compressed this week, dragging overall margins down further. Every $1 per barrel rise in crude above $70 could compress marketing margins by ₹0.55 a litre, according to JM Financial.
Oil marketing companies under pressure as peak earnings meet rising geopolitical tail risks
