New Delhi [India], November 13 (ANI): Oil marketing companies (OMCs) continue to incur losses on the sale of petrol and diesel, although the pressure has eased following a decline in crude oil prices, according to a report by Jefferies.
The report highlighted that marketing losses on petrol have narrowed to Rs 12 per litre, while losses on diesel have come down to Rs 27 per litre, based on 15-day average pricing.
This compares with losses of Rs 22 per litre on petrol and Rs 28 per litre on diesel in October 2026.
Jefferies said, “With the Indian crude basket price easing to USD 97/ bbl (USD 120/bbl in Oct-26), the current losses on petrol/diesel have come down to Rs12/27 per liter (Rs22/28 in Oct-26)”.
The improvement comes as the Indian crude basket price has eased to USD 97 per barrel from USD 120 per barrel in October 2026, providing some relief to oil marketing companies.
However, despite the decline in crude prices, marketing margins on both fuels remain deep in negative territory, indicating that OMCs continue to face pressure on their fuel marketing business.
The report's assessment of marketing margins shows that petrol and diesel margins have remained largely negative through much of 2026, with losses widening during periods of elevated crude prices.
Jefferies also highlighted that crude oil exports from the Middle East have returned to pre-war levels. Saudi Arabia's crude oil production surged in October 2026 to its highest level in the past four years, while physical premiums collapsed to zero.
Despite the improvement in crude supply conditions, freight rates remain very elevated and diesel spreads continue to stay above USD 80, adding to the pressure on the oil market.
The report also noted that spot LNG prices averaged USD 31 per mmbtu, down 2 per cent week-on-week. However, domestic affordability remains stretched at current prices.
European Union gas storage currently stands at 72 per cent, compared with 82 per cent during the same period last year. With colder weather leading to a decline in gas storage, Jefferies expects gas prices to remain elevated as the winter season approaches.
On the petrochemical front, the report highlighted an improvement in margins. A sharp fall in naphtha prices, alongside firm polyethylene (PE) and polypropylene (PP) prices, has widened petrochemical spreads over the past fortnight.
Overall, while the easing of crude oil prices has reduced petrol and diesel marketing losses for OMCs, the companies continue to face pressure from elevated fuel-related costs and high diesel spreads. (ANI)
OMCs' losses narrow as crude cools, but still stand at Rs 12/L on Petrol and Rs 27/L on Diesel: Jefferies
