In the run-up to 2019 general elections, Fitch Ratings in a report on Friday raised the spectre of return of state control on fuel pricing in India.
This comes against the backdrop of the NDA government on Thursday effecting a Rs 2.50 per litre cut in prices of petrol and diesel to ease inflationary pressure and boost consumer confidence. Many BJP-ruled states have also cut value-added tax (VAT) on fuel by an equivalent amount at the Centre’s request.
According to PTI, India’s biggest private fuel retailer Nayara Energy, formerly known as Essar Oil, will join state-owned oil companies in subsidising petrol and diesel by Re 1 per litre, Chief Executive B Anand said Friday. Nayara, which owns 4,756 petrol pumps out of the 63,275 retail outlets in the country, will “align with OMCs” on absorbing Re 1, he said. Read more