Profitability of state-owned refiners such as Indian Oil Corp (IOC) may come under pressure if the government asks them to temporarily freeze the prices of petrol, diesel and other fuels ahead of general elections, Moody’s Investors Service said on Tuesday.
Before the Gujarat and Karnataka state elections, the government had asked oil companies to temporarily suspend the practice of adjusting the prices of petrol and diesel on a daily basis. “Given India’s upcoming general election in April-May, we expect the refiners’ profitability may come under pressure if they are asked by the government to temporarily freeze the prices of petroleum products,” Moody’s said in a report.
