Oil Firms Eye Refinery Price Freeze to Curb Losses; MRPL, CPCL Face Major Hit

• State-owned OMCs consider freezing or discounting Refinery Transfer Price (RTP) to limit losses from retail fuel price freeze.
• International oil prices surged from $70 to over $100/barrel due to West Asia conflict, but retail prices in India remain unchanged since April 2022.
• The move aims to pay refineries less than import-parity cost, forcing them to absorb higher crude costs.
• Standalone refiners like MRPL, CPCL, and HMEL, with negligible retail presence, are expected to be most affected.
• Integrated OMCs (IOC, BPCL, HPCL) can offset losses, but independent and private refiners (Nayara Energy, Reliance Industries Ltd) face margin squeeze.