Daily pricing to improve OMCs' marketing margins

Move will help the distribution network and retail outlets manage inventory in a better manner

Ujjval Jauhari  |  New Delhi 

The Street considers the daily pricing of diesel and petrol a positive step for oil-marketing companies (OMCs) because it can boost their marketing margins. While the pilot project on daily pricing for diesel and petrol is said to start next month, it will gradually be expanded to cover the entire country. Analysts at Jefferies say that the move should raise confidence over the sustainability of deregulation and is a positive as far as the outlook for marketing margins is concerned. It is not surprising then that the stock prices of Bharat Petroleum Corporation and Indian Oil Corporation ...

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Daily pricing to improve OMCs' marketing margins

Move will help the distribution network and retail outlets manage inventory in a better manner

The Street considers the daily pricing of diesel and petrol a positive step for oil-marketing companies (OMCs) because it can boost their marketing margins. While the pilot project on daily pricing for diesel and petrol is said to start next month, it will gradually be expanded to cover the entire country. Analysts at Jefferies say that the move should raise confidence over the sustainability of deregulation and is a positive as far as the outlook for marketing margins is concerned. It is not surprising then that the stock prices of Bharat Petroleum Corporation and Indian Oil Corporation (IOC) hit fresh 52-week highs on Thursday while the Hindustan Petroleum Corporation scrip trades near its yearly highs.While the OMCs have been reviewing prices every fortnight, daily pricing decisions are more beneficial. It can help OMCs pass on any hikes (depending on crude oil prices or rupee movement) on a daily basis and customer acceptance will be better. Also it will help the distribution ... The Street considers the daily pricing of diesel and petrol a positive step for oil-marketing companies (OMCs) because it can boost their marketing margins. While the pilot project on daily pricing for diesel and petrol is said to start next month, it will gradually be expanded to cover the entire country. Analysts at Jefferies say that the move should raise confidence over the sustainability of deregulation and is a positive as far as the outlook for marketing margins is concerned. It is not surprising then that the stock prices of Bharat Petroleum Corporation and Indian Oil Corporation ... image
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