Moneycontrol BureauAmidst the gloom of demonetisation, buying fuel was something people could cheer about as the government announced a discount of 0.75 percent for payments through credit and debit cards and using digital methods. But the fuel companies, who are bearing the cost of discounts, may urge the government to compensate them for their losses, reports Mint. While the oil marketing companies (OMCs) say the discount helps their marketing strategies, they do not want the discount period to be extended. The discount came into effect on December 13 and people could avail the discounts at fuel stations run by Indian Oil Corp. Ltd (IOCL), Bharat Petroleum Corp. Ltd (BPCL) and Hindustan Petroleum Corp. Ltd.As per a report, discounts could dent the revenue of OMCs by around Rs 1,100 crore till March. If the discount period is extended by another quarter, it would double. “Assuming 70 percent of transactions at OMC outlets go digital, IOCL, BPCL and HPCL could see a worst-case earnings hit of 8-14 percent in FY18 if they are unable to pass on these costs (which is unlikely),” said a Religare Institutional Research in a report dated 9 December.
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