BPCL privatisation faces bigger obstacles than Air India sale. Here’s why
The privatisation of Bharat Petroleum may hit a roadblock due to high fuel prices due to a rise in global crude oil prices.
The price of global benchmark Brent crude oil has risen 13% in a month to $85 per barrel, its highest level in seven years.
A senior oil ministry official told Business Standard that state-run oil marketing companies were currently taking a hit on sale of petrol, diesel and LPG and expected to recover losses when oil prices would soften later. The fuel retailers are losing about Rs 100 for every domestic LPG cylinder sold.
Indian Oil, Hindustan Petroleum and Bharat Petroleum adopted a daily price revision mechanism in June 2017 to pass on the impact of international oil prices quickly.
