Rising crude prices, shift to clean energy pose hurdles to BPCL sale
The bid to cross the finishing line on the sale of BPCL by March is facing the twin hurdles of a global crude price spike and the growing shift away from fossil fuels to clean energy. The rapid-fire final rounds of the Air India strategic sale had encouraged the Modi government to wrap up the BPCL exercise quickly.
Analysts said the government’s nudges to state-owned refiners on the pricing of petrol and diesel could dissuade bidders unless they get a categorical assurance from the Centre to allow the full play of market forces.
State-owned refiners continue to price petrol and diesel keeping in mind political considerations as they do not increase product prices during the poll period.
