Fresh US sanctions may hit GRMs of Indian oil refiners

Gross refining margins of Indian oil refiners are likely to shrink going ahead post fresh sanctions on two Russian oil producers and nearly 200 crude-carrying vessels, according to sector experts.

- Rituraj Baruah

Buyers of cheap Russian oil may now have to look at other sources of oil which are unlikely to be offered at discounts, they said.

"Due to the sanctions, oil companies may have to look at other sources of oil, which may not come with discounts. This would increase the cost and eventually shrink refining margins of the refineries. Although the overall import bill of the country is unlikely to see a major hit, the GRMs may somewhat decline," said Prashant Vasisht, senior vice president and co-group head, corporate ratings, Icra.