New Delhi, April 5 -- In a significant departure from standard fuel price deregulation, India's state-owned oil marketing firms will now pay refineries a reduced rate for petrol, diesel, jet fuel (ATF), and kerosene to curb growing deficits caused by an internal freeze on retail costs, PTI reported citing sources.

These oil marketing companies (OMCs) established new rates on March 26 for petroleum goods at discounts reaching Rs.60 per litre below their import costs, according to two individuals with direct insight into the situation.

The revised pricing, effective from March 16, is expected to most severely impact independent refiners including MRPL, CPCL, and HMEL.

Global crude prices have surged from roughly $70 per barrel prior to t...