Price freeze cost IOC, BPCL, HPCL $2 billion revenue: Moody’s

NEW DELHI: State-run fuel retailers, which control 90% of the Indian market, have lost more than $2 billion, or about Rs 19,000 crore, revenue by freezing pump prices between November 5 last year and March Deven though India’s average crude cost rose 35% during this period, Moody’s Investors Service said on Thursday.
“Based on our estimates of average sales volume between November and first three weeks of March, the state-owned refining and marketing companies (IndianOil, Bharat Petroleum and Hindustan Petroleum) together have lost around $2.25 billion in revenue on petrol and diesel sales,” the agency said in a report.
“Based on current market prices, the oil marketing companies are currently incurring a revenue loss of around $25 (about Rs 1,900) per barrel and $24 per barrel on sale of petrol and diesel, respectively,” the agency said in a report.