Gross Refinery Margins improve by 11% in 1Q FY12

Karachi: The Gross Refinery margins (GRMs) of local refineries have improved from USD 2.7 per barrel in 4QFY11 to USD 3 per barrel in 1QFY12, witnessing an increase of 11% QoQ on account of improved gasoline prices structure in the local market whereas, the margins declined by 11.76% from USD 3.4 per barrel in 1QFY11 when compared on YoY basis owing to falling oil prices which caused inventory losses and reduced deemed duty.

According to Alfalah Securities Limited, although, the crude oil (WTI) is currently hovering near USD 83 /bbl which is lower as compared to the prices last year however the higher margins are expected to translate in improved earnings for the local refineries.

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