Relief for OMCs, oil minister says no knee-jerk change in fuel pricing policy




Shares of oil marketing companies BPCL, HPCL and IOC plunged up to 6.5% in Wednesday’s trade. NSEBSEIOCLoading data…

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        ChartsValuation & Peer ComparisonCommunity BuzzPEER COMPANIES Union Petroleum Minister Dharmendra Pradhan on Wednesday evening rejected a suggestion that oil marketing companies should absorb any further rise in crude prices in a big relief to the domestic refiners, hours after their stocks took a tumble in trading.

        The government has no business interfering with the workings of the OMCs, Pradhan said.

        Shares of oil marketing companies BPCL, HPCL and IOC settled 6.23 per cent, 5.06 per cent and 4.28 per cent down at Rs 500.35, Rs 457 and Rs 416.15, respectively, in Wednesday’s trade.

        Defending the policy for daily revision of fuel prices, he said petrol and diesel prices are deregulated and are market aligned.

        “Dynamic fuel price mechanism is the most transparent model for consumers; it can’t be changed on knee-jerk basis,” he said.

        He, however, said an analysis of global trends shows that petrol, diesel prices will ease out soon. Global crude oil prices rose after Irma and Harvey caused a drop in refining capacity by 13 per cent.

        International prices of petrol and diesel are up by 18 per cent and 20 per cent, respectively year-to-date.

        The minster advocated bringing petroleum products under GST, saying it will ensure tax predictability.




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