New York, Oil marketing companies (OMCs) in March 2024 have reported a total sale of 1.15 million tons, marking an increase of 4% year-over-year and 3% month-over-month, As per a recent study by JS Global. The sales uptick, primarily in Motor Spirit (MS) and High-Speed Diesel (HSD), suggests a potential overachievement of the fiscal year 2024’s revenue targets.

According to JS Global, the observed monthly sales growth reverses a trend of sluggish performance, typically attributed to reduced winter mobility. December quarter sales had previously peaked due to demand in the Rabi agricultural season. JS Global’s data indicates that the Petroleum Development Levy (PDL) has amassed Rs729 billion in the first nine months of FY24, which is 84% of the annual target of Rs869 billion. This collection pace sets the stage for surpassing the year’s financial objectives, even with an expected slight dip in overall industry sales compared to the previous year.

The analysis from JS Global underscores the resilience of the OMC sector amid fluctuating market conditions, reinforcing expectations for fiscal performance. The detailed findings of the March 2024 sales and financial outlook for OMCs are available in the accompanying PDF report by JS Research.