New Delhi: After suffering heavy losses in the prior fiscal year, state-owned oil marketers are expected to generate a profit on gasoline marketing in the current fiscal year ending on March 31, 2024, according to Fitch Ratings' Monday report.
As a result of the government's increased investment on infrastructure and a pick-up in industrial activity, as well as the estimate that GDP will rise by 6-7 per cent in the next few years, the rating agency anticipates that demand for petroleum products in India will grow by a mid-single digit percentage in the medium term.
Following large losses in FY23 due to high crude prices and unchanged retail fuel prices, "We expect the marketing segment of Indian oil marketing companies to turn profitable from the financial year ending March 2024 (FY24) as crude oil prices fall to Fitch's assumption of USD 78.8 per barrel," it said.—Inputs from Agencies