(FE)
Oil Marketing Companies (OMCs) in India are likely to record losses in Q2 which may affect government’s share of dividend. As per the report, if the current situation prevails, the government may not get any dividend. These losses are expected to continue in the September quarter as well.
Furthermore, under recovery on diesel has come down to Rs 18 per litre from Rs 38-40 per litre previously. The Oil Ministry is also expecting the global as well as domestic demand for diesel to surge in the Oct-Nov period owing to multiple reasons. During the period of rising international crude oil prices a few months ago, Indian fuel retailers were losing Rs 20-25 per litre on diesel and Rs 14-18 a litre on petrol. These losses have been trimmed with the fall in oil prices.
