Economy
The rupee fell on Thursday to an all-time low of 69.0925 | Lakshmi Samyukta/Bloomberg
Text Size:

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.

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.

A cut in excise duty on fuel prices is unlikely due to sluggish revenue collections on the back of a botched rollout of the Goods and Services Tax, the people said. The oil ministry has been asked to prepare subsidy payments at different price points in case of a further run up in oil prices.

HPCL is not aware of any directive from the government to absorb a part of the losses from higher crude prices, the company’s chairman, M. K Surana, said on the sidelines of the International Energy Forum in New Delhi.

While Modi has reaped the benefits of the biggest price crash in a generation since coming to power 2014, oil is recovering as the government gears up for elections in 2019. Since hitting a low of $ 27.1 per barrel in 2016, Brent crude is currently trading around $70 level. — Bloomberg

Subscribe to our channels on YouTube & Telegram

News media is in a crisis & only you can fix it

You are reading this because you value good, intelligent and objective journalism. We thank you for your time and your trust.

You also know that the news media is facing an unprecedented crisis. It is likely that you are also hearing of the brutal layoffs and pay-cuts hitting the industry. There are many reasons why the media’s economics is broken. But a big one is that good people are not yet paying enough for good journalism.

We have a newsroom filled with talented young reporters. We also have the country’s most robust editing and fact-checking team, finest news photographers and video professionals. We are building India’s most ambitious and energetic news platform. And we aren’t even three yet.

At ThePrint, we invest in quality journalists. We pay them fairly and on time even in this difficult period. As you may have noticed, we do not flinch from spending whatever it takes to make sure our reporters reach where the story is. Our stellar coronavirus coverage is a good example. You can check some of it here.

This comes with a sizable cost. For us to continue bringing quality journalism, we need readers like you to pay for it. Because the advertising market is broken too.

If you think we deserve your support, do join us in this endeavour to strengthen fair, free, courageous, and questioning journalism, please click on the link below. Your support will define our journalism, and ThePrint’s future. It will take just a few seconds of your time.

Support Our Journalism

Share Your Views

LEAVE A REPLY

Please enter your comment!
Please enter your name here