No petrol price cut for now: OMCs

Indian oil marketing companies (OMCs) like IOC, HPCL and BPCL have decided to hold back on a petrol price cut, reports CNBC-TV18’s Nayantara Rai. The decision was taken on Tuesday at the fortnightly review meeting of prices and under recoveries.

Also read: Export parity may impact OMC GRMs by $2-2.50/bbl: Quant 

Sources in OMCs have confirmed that there is a cushion of almost Re 1 per litre, and that the decision of refraining from passing on the benefit was taken in light of the upcoming assembly elections in five states. Despite the fuel being de-regulated, owing to political reasons, OMCs may not be allowed to revise petrol prices around that time. 

OMCs are also hoping to make up for previous losses incurred on petrol by holding back the price cut. Sources say the three companies have so far lost in excess of Rs 400 crore this fiscal and almost Rs 1500 crore in the previous financial year.