State-run oil firms are no longer taking margin hit on petrol, diesel sales


State-run oil firms are no longer taking margin hit on petrol, diesel sales

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, sources said.

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.

But oil prices have slumped in recent weeks allowing the marketing margin to be restored to its former levels, said a source privy to the matter. Read More

Leave a Reply

Your email address will not be published.