New Delhi, Oct. 7 -- Fuel marketing losses of state-run oil marketing companies (OMCs) narrowed sharply in the September quarter, helped by lower crude oil prices and the full impact of retail fuel price hikes, according to Emkay Research.

However, diesel sales continued to remain loss-making during the quarter, the research firm said in its oil and gas sector preview.

Emkay estimated that petrol marketing margins, excluding the impact of the windfall levy, improved to Rs 2.9 per litre in Q2FY27 from a loss of Rs 12 per litre in the previous quarter.

Diesel marketing losses also narrowed to Rs 16.7 per litre from Rs 32 per litre in the previous quarter.

The improvement comes after OMCs faced significant pressure on their fuel marketin...