Good times are coming to an end for Oil Marketing Companies-I: Margin flare-up coming to an end?
Jan 13: The flare up seen in the marketing margins of public sector oil marketing companies may be coming to an end. 8The peak has definitely come and gone 8One reason for this is the imposition of a 0.75% discount on cashless fuel sales, potential fee burden of ~1% on card transactions and competition from private players offering discounts. While OMCs will eventually pass on these charges to consumers, the scope for margin expansion in FY18 has reduced. 8HPCL, followed by BPCL, would be the most vulnerable. 8IOCL should be insulated given its smaller market share and slimmer margins. Click on Reports for more