RIL may see a dip in its refining margin due to overcapacity world wide. Note that its main RIL Jamnagar Refinery is an Export Oriented Refinery and due price pressure in its petrochemical business, RIL’s refining margins may end up anywhere between $6.6 to $7.4. Compare it with Benchmark Singapore complex refining margin of $3.3/bbl, and the final figure would depend on the margins its new project is able to earn. Contribution of its refining and petrochemical business to its overall business is falling.

Our View: Margins have come down also due to lowering of crude prices but it is still higher then many of the India’s and world’s refineries. So for refining business margins have to come by cutting costs, better management of fuel and loss, crude processing mix of sweet and sour crude inside the refinery.

Link: http://economictimes.indiatimes.com/RIL-feels-refining-margin-pinch-may-log-lower-net/articleshow/5170714.cms

Update: RIL stock fell about 3.5% on 30th October with the news and also due to weak stock market sentiment in India.