State-run oil refiners Hindustan Petroleum Corporation Ltd. (HPCL), Bharat Petroleum Corporation Ltd . (BPCL) and Indian Oil Corporation Ltd. (IOC) are witnessing sustained strength in margins, driven by higher refining cracks and lower crude prices, according to brokerage firm Citi.

Citi said that in the third quarter to date (QTD), refining margins have improved as gasoline and diesel cracks are trending up by $4-5 per barrel quarter-on-quarter, while crude oil prices are down by about $4 per barrel.

However, the brokerage flagged potential fiscal slippage risks for the government, estimated in the range of ₹35,000-60,000 crore for FY26.

This, it said, could prompt the government to consider an excise duty hike on petrol and diesel after the Bihar state elections.

Every ₹1-per-litr

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