Oil Prices Skyrocket: Indian Companies from OMCs to Aviation Face Major Impact

• Crude oil prices surged nearly 30% on Monday, nearing $120 per barrel, after a record weekly gain.
• Upstream companies like ONGC and Oil India benefit, with a $1 rise in oil prices boosting annual revenue by ₹300-₹400 crore.
• OMCs (HPCL, BPCL, Indian Oil), paint, aviation, and tyre companies face negative impacts due to increased raw material costs and margin pressure.
• Government sources indicate pump prices will not increase despite rising crude, further pressuring OMCs' margins.
• Tyre stocks face 15-20% raw material cost increase, with crude forming 45% of the basket, impacting profitability and FCF generation.