Impact of high crude prices on OMCs A rise in crude oil prices generally puts pressure on OMCs, as crude constitutes the bulk of their input costs. Higher crude prices increase the overall expense of refining and fuel production. Devarsh Vakil, Head of Prime Research at HDFC Securities, said, “Oil marketing companies are expected to face a negative outlook as rising crude oil prices are likely to compress their marketing margins. Sumit Pokharna, VP – Fundamental Research at Kotak Securities, pointed out that sustained higher crude prices present macroeconomic and sector-specific challenges. The transmission channel is clear: higher crude increases inflation risk; higher inflation pushes bond yields up; rising yields compress equity multiples.

Source: Mint March 03, 2026 18:32 UTC