GRMOVER

GRM (Gross Refining Margin) – Explained Simply GRM measures how profitable an oil refinery is. 🔹 Definition GRM = Value of refined petroleum products − Cost of crude oil It shows how much a refinery earns per barrel after converting crude oil into products like petrol, diesel, ATF, LPG, etc. ➡️ Reported usually in USD per barrel ($/bbl). 🔹 Simple Example Crude oil cost: $70/bbl Value of refined products: $85/bbl 👉 GRM = $15/bbl Higher GRM = higher refinery profitability. 🔹 Why GRM Matters (Especially for Indian Refineries) Refineries don’t sell crude; they sell finished fuels GRM directly impacts: EBITDA Cash flows Quarterly results Share price performance For large, complex refineries (like India’s coastal refineries), GRM is a key earnings driver.