Industry stress
Refining margin
Singapore GRM at $3.8/bbl; diesel crack below $15
editorial · as of 1 Apr 2026
Operator read
Refining: GRM compressed at $3.8/bbl; diesel crack weak.
Gross refining margin is the spread between crude input cost and product slate value. Indian refiners benchmark to Singapore GRM minus a complexity discount.
Stress level: Stressed. Check feedstocks and drivers below.
Feedstock costs
Stress drivers
- Singapore GRM below $4/bbl
- Brent-Dubai spread widening above $3/bbl
- Diesel crack below $15/bbl
- Naphtha crack softening on Chinese oversupply
- Crude throughput capacity constraint at any major refinery
Why it matters
India's six OMC refinery complexes collectively process ~250 mt/year of crude. Gross refining margin is the primary earnings driver for IOC, BPCL, and HPCL. Singapore GRM below $4/bbl typically signals OMC under-recovery on regulated products or compression in discretionary product exports. Diesel crack is the single most important spread, driving 40-45% of product slate value and correlating tightly with quarterly OMC profitability.
Source