Government asks oil companies not to raise diesel price, absorb Re 1/litre hike


Government asks oil companies not to raise diesel price, absorb Re 1/litre hike

India’s state-run oil retailers have been asked not to increase retail diesel and gasoline prices and absorb a part of the losses due to the recent recovery in global crude oil, people with knowledge of the matter said.

Companies including Indian Oil Corp, Bharat Petroleum Corp. and Hindustan Petroleum Corp. will have bear a loss of up to 1 rupee per liter on sale of diesel and gasoline, the people said asking not to be identified as the matter is private. Shares of Indian Oil fell as much as 7.6 percent in Mumbai, the most since November 2016 in intraday trading, while HPCL lost as much 8.3 percent.

Prime Minister Narendra Modi’s administration wants to keep oil prices under check to shore up popular support ahead of a series state elections this year. The South Asian nation, which imports more than 80 percent of its annual crude oil requirement, wants to see prices at about $50 a barrel in order to manage its finances better, Oil Minister Dharmendra Pradhan said in an interview. Read More

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