OMCs cut refinery prices to limit losses
New Delhi, April 6 -- In a first since fuel price deregulation, Indian state-run oil marketing companies will pay refineries a discounted price for petrol, diesel, aviation turbine fuel (ATF) and kerosene to limit mounting losses from a self-imposed freeze on retail fuel prices, sources said.
The oil marketing companies (OMCs) on March 26 fixed rates for petroleum products that are at a discount of up to Rs.60 per litre to their imported cost, two people with direct knowledge of the matter said. The discounted rates, which are applicable with effect from March 16, will hit standalone refiners such as MRPL, CPCL and HMEL the most.
International oil prices have risen from about $70 per barrel before the outbreak of the Middle East conflict to over $100, but retail petrol and diesel prices in India have remained unchanged, forcing OMCs to absorb the impact....
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