Shares of Indian oil marketing companies like Indian Oil Corporation Ltd., Hindustan Petroleum Corporation Ltd., and Bharat Petroleum Corporation Ltd. declined on Monday after the benchmark Singapore Gross Refining Margins hit their lowest level since October 2023.
Closing GRM levels on Friday stood at $2.5 per barrel of oil, a 19% drop from the $3.1 per barrel level a month ago.
The Singapore GRMs represent what refiners make from processing each barrel of crude into diesel, gasoline, and other products. Since Singapore is a major refining center, these margins act as a benchmark for the global refining industry.
Intraday, shares of Hindustan Petroleum fell 5.22%. While, Indian Oil and Bharat Petroleum stock were down 2.64% and 4.34%, respectively.