OIL REFINERS WITNESS A RISE IN MARGINS

RIL, MRPL, and CPCL, are up; BPCL, HPCL and IOC have been weighed down by marketing margin concerns.

• The global energy market remains uncertain as the Russia-Ukraine War goes into its fourth month. Crude oil and Natural Gas has risen, so did the Gross Refining Margins (GRMs) for petroleum products
• Because the war has resulted in the shutdown and sanctions of refining capacities and the lockdown in China also contributed to shortages in refined products, which led to the rising refining margins.
• India's imports of discounted Russian Crude will rise from around 1-2 percent of all imports in calendar year 2021 to over 15 percent the current quarter. 
• Reliance Industries, standalone refineries such as Chennai Petroleum Corporation(CPCL) and MRPL will be clear gainers. 
• Public Sector Undertakings such as HPCL, IOC, and BPCL have suffered since they are forced to sell at lower prices.