New Delhi: Demand for fuel transportation shows signs of increasing pre-pandemic levels from FY23 as seen from the sale of petroleum products for OMCs (oil marketing companies) which increased between 8 percent-11 percent for nine months which ended in December fiscal year 2021 -22 from the previous year because demand rebounded from a pandemic induced fall.
However, requests are still 5 percent – 7 percent below the pre-pandemic level at 9MFY20.
Fitch Ratings is a view that OMC will produce a stable marketing margin in FY23 because they continue to continue changes in crude oil prices to consumers, Fitch’s ranking studies showed on Tuesday.
However, noting high price retail fuel can limit the extent to which changes are continued, if crude oil prices continue to increase.
OMC caused a loss of marketing inventory in 3QFY22, driven by a duty of excise assignments in November 2021, because fuel inventory in pipelines and retail outlets was valued at a higher level.
According to World Oil Outlook 2021, the mainstay publication by the Organization of the Petroleum Exporting State (OPEC), oil demand in India is expected to reach around 11 million barrels per day in 2045 compared to around 4.9 million barrels per day in 2021.
According to Fitch ranking , a strong purification margin and the possibility of an increase in inventory arising from the increase in oil prices is expected to compensate for moderate marketing margins from Indian oil marketing companies (OMC) and continue to support their independent credit profiles (SCP).
With the Indian economy that continues to recover, diesel and gasoline refining margins tend to remain healthy in the near future, even though the diesel spread can narrow a little when the peak winter warming demand is reduced, the report said.
Increase demand and rebound in the spread of products, along with inventory profits, expelling the gross refining margin of Indian oil companies to $ 8.5 / barrel in the first nine months of the financial year ending March 2022 (9MFY22) of $ 3.0 / barrel in 9MFY21 and From Bharat Petroleum Corporation to $ 6.8 / barrel of $ 2.9 at 9MFY21.
Other Hilir Company Hindustan Petroleum Corporation Limited saw a gross purification margin up to $ 4.5 / barrel from $ 2.4 / barrel, according to Fitch.
The increase was smaller than his colleagues for conducting a shutdown planned to expand the refinery and stabilization of Mumbai to take time but the refinery now operates at its expanded capacity.