Govt initiatives help oil companies
image for illustrative purpose
New Delhi: The Indian government's decisive initiatives have helped oil marketing companies (OMCs) thrive in a volatile global environment, a report said on Tuesday.
In the last six months, Indian oil marketing companies have witnessed volatility in refining margins, potential risk on the US urging India to reduce its intake of Russian oil and depreciation of the Indian currency against the US dollar. "The Indian government has been backing OMCs by supporting decisions (even in August 2025, India imported 1.3 million barrels per day), which are in the best commercial interests of these companies and also promising to pay LPG under-recovery incurred in FY24," HSBC Global Investment Research said in a report. All this resulted in OMC stocks surging by 14-23 per cent as compared to the NIFTY50 (up 12 per cent) in the last six months.
Combined refining and marketing (R&M) margins have been the hallmark of this steady performance.
