Fuel retailers may cut rates in run-up to polls

In a respite to consumers, state-run fuel retailers may cut petrol and diesel rates ahead of crucial assembly elections with India’s average crude import price dropping by 5% in a week, four people aware of the matter said.

Notwithstanding the outcome of the international cartel Opec+ meeting not to raise output, prices of petrol and diesel need to be brought down, with the Centre, states and oil marketing companies (OMCs) equitably sharing revenue implications, they added, requesting anonymity.

Two of the people said OMCs have already built a cushion of ₹2-3 per litre even as international oil prices have fallen after reaching a 13-month peak on February 24. Fuel retailing in India is dominated by three state-run OMCs – Indian Oil Corp. Ltd (IOC), Bharat Petroleum Corp. Ltd (BPCL) and Hindustan Petroleum Corp. Ltd (HPCL).