Oil marketing companies (OMCs) as well as oil ministry sources have told CNBC-TV18 that they will continue with the diesel price hike of 50 paise per litre and if it were to discontinue it, it would be in violation of the election code of conduct.
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Once the election code of conduct comes in, one is supposed to not do normal government business. So, the oil ministry and the oil marketing companies as we speak are quite confident that this will not stop. They also feel that perhaps the election commission will take note that the under-recoveries are still high at almost Rs 8.50 per litre.
As far as petrol prices go, even though OMCs have been given a free hand with petrol prices, the ground reality is very different indeed. So, what the sources in the oil ministry are saying is that in case the petrol price revision is going to be of a significant quantum, they can seek prior approval of the election commission. The OMCs can always inform the election commission that this is a decision, there is a revision needed, and they then wait for an approval and lastly go ahead and announce it.
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