As the price of a barrel of Brent crude surpassed the $70 mark in the global market, the government is looking to control the increase in retail prices.
Of course, the share of all three government-owned oil companies have declined on the stock markets after reports surfaced of the government having asked them not to raise prices.Unconfirmed reports claim that the government has directed the three oil firms to bear a loss of up to Rs1 a litre on sale of diesel and petrol. Oil Minister, Dharmendra Pradhan shared that, to manage finances better, crude oil prices should be around 50 dollars (Rs 3270) a barrel.
The worries over oil prices escalated on a day the International Energy Agency (IEA) said global oil demand would not peak in the near future even as India's vulnerability to high prices will increase with the surge in its crude oil imports. Shares of Indian Oil fell as much as 7.6% in Mumbai, the most since November 2016 in intraday trading, while HPCL lost as much 8.3%. In the past, the prices were revised on a fortnightly basis.
"No, we haven't heard from the government anything (on dropping daily price revision)", IOC Chairman Sanjiv Singh told reporters on sidelines of the IEF Ministerial meeting here.
Oil marketing companies opened negative on the bourses.
Shares of oil marketing companies continued to be under selling pressure as oil prices were hovering near 2014-highs.
The people, on the contrary, shared that an excise duty cut on rising fuel prices is unlikely due to the inefficient implementation of Goods and Services Tax (GST), and revenue collection. Finance Secretary Hasmukh Adhia had last week ruled out any immediate reduction in excise duty to cushion the increases warranted from rise in global oil prices.