New Delhi, 16 September (IANS). Taking the necessary initiatives from the Government of India in an atmosphere of global uncertainty will help the oil marketing companies (OMCs). This information was given in a report released on Tuesday.
In the last six months, the US has increased pressure on the refining margin of Indian oil marketing companies due to pressure on Russia to reduce dependence on Russia, reduced value of rupee against dollar and other reasons.
The report of HSBC Global Investment Research said, “The Government of India is supporting OMC’s decisions that are in the best commercial interests of these companies and are also promising to pay the LPG Under-Rrick in FY 24.”
As a result, OMC stocks have recorded a rise of 14-23 percent in the last six months, while the Nifty has registered a rise of 12 percent during this period.
The report stated that the refining margin increased the interim period and then declined. The devaluation of the Indian currency ended some marketing margin, but the joint margin remained stable at $ 22–25 per barrel, much higher than our and market estimates.
The report said, “Our HSBC global team has estimated a large surplus in oil since the fourth quarter of 2025, with HSBC’s risk of decline in the forecast of Brent Oil of $ 65 per barrel for 2026.”
In addition, despite the weakness in ATF, the demand for auto fuel continues. In August 2025, the demand for auto fuel continued to rise and it increased from 2.6 percent year after year.
Petrol demands increased by 5.5 percent year after year, while diesel demands increased by 1.2 percent year after year. The demand for ATF remained negative for the second consecutive month -2.9 percent (after -2.3 percent in July).
The global investment firm said, “With the improvement in recent trends in air traffic, we hope that the decline will also reversed.”
-IANS
ABS/
