Investors prefer green assets: Fresh clouds over BPCL sale

State-run oil-refiner-cum-retailer BPCL’s privatisation, which has been held up for over a year, could prove to be a challenging task for the government in the next fiscal as well, as potential investors have turned more sceptical of the verity of pricing freedom with state-owned fuel retailers.

Investors fear that tacit government control on auto fuel prices by state-run retailers, as was evident between November 4, 2021, and March 22, when the retail rates were despite a sharp rise in global oil prices, could be a recurring phenomenon. They feel such practice would deny a level-playing field to BPCL after privatisation, hurting its businesses. While the government can subsidise its firms, if required, private companies have to fend for themselves.