Govt set to hold fuel rates despite rise in crude prices

Biting The Bullet

♦ Govt may not hike fuel rates ahead of polls

♦ OMCs kept petrol and diesel prices on freeze for record 18 mths

♦ Crude oil price rise leading to heavy losses in H1/FY23

♦ Earlier, easing oil prices propelled OMCs to profitability

♦ Saudi, Russia reduced production levels

♦ However, higher oil unlikely to sustain for long as global growth weakens

New Delhi: Petrol and diesel prices are unlikely to be increased despite firming raw material costs because of upcoming general elections next year, Moody’s Investors Service said. Three state-owned fuel retailers -- Indian Oil Corporation (IOC), Bharat Petroleum Corporation Ltd (BPCL) and Hindustan Petroleum Corporation Ltd (HPCL) -- which control roughly 90 per cent of the market, have kept petrol and diesel prices on freeze for a record 18 months in a row. This is despite crude oil cost surging last year, leading to heavy losses in first half of current fiscal.