HomeNewsBusinessMarketsOMCs face downgrade on FY12 subsidy burden: IIFL India

OMCs face downgrade on FY12 subsidy burden: IIFL India

According to Prayesh Jain of IIFL India, the possibility of bearing 1/3rd subsidy could lead to a downgrade for a few oil marketing companies.

September 21, 2011 / 09:24 IST
Story continues below Advertisement

Your browser doesn't support HTML5 video.

Even though we saw another hike in petrol prices last week, oil marketing companies are looking at large under recoveries because of the cut on excise duty and the possibility of bearing 1/3rd subsidy. According to Prayesh Jain of IIFL India, if the subsidy sharing measure goes through, net realizations of companies could plummet to USD 40-45 per barrel.

first published: Sep 20, 2011 02:00 pm

Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!