Indian state-owned fuel retailers have stopped absorbing a government-mandated cut of 1 rupee (0.014 U.S. cents) a liter in their marketing margins on the sale of petrol and diesel due to a steep fall in global oil prices, said M K Surana, chairman of one of the three companies, Hindustan Petroleum Corp Ltd.
In October, India’s finance ministry had cut its production tax on the two fuels by 1.50 rupees a litre and had asked state-owned fuel retailers to reduce their marketing margins by 1 rupee a litre to insulate consumers from a surge in global oil prices at the time.
“Since global prices are low this issue is not there anymore,” Surana told reporters on the sidelines of an industry conference. Reuters had earlier in the day reported sources saying that state-owned fuel retailers had stopped absorbing the 1 rupee margin hit. Read More
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