(PTI)
Government decision to revise retail fuel prices daily is likely to result in improvement marketing margins for oil companies leading to better profitability, says a report. In a report, India Ratings today said the move, effective May 1 in select cities, is another positive structural change in the downstream sector after petrol price deregulation in 2010, diesel de-regulation in 2014, direct benefit transfer for LPG, give-it-up scheme for LPG,lowering PDS kerosene allocation and gradual hike in its prices.
This has resulted in lower under-recoveries which in turn has led to the state-run oil marketers’ market borrowing to fall steeply. Between fiscals 2014 and 2016, gross borrowing of state-run OMCs fell by 29 per cent and interest cost has consequently declined by 37 per cent, it said.
