With prices of crude oil hitting new highs, there is little chance that the oil marketing companies (OMCs) will reduce pump prices anytime soon, Petroleum and Natural Gas Ministry officials hinted.
Over the past few months, the government has called for OMCs to reduce prices. But the oil giants have held back, pointing towards their accumulated losses. This was due to under-recoveries or the difference between the retail selling price and the international petrol, diesel, and liquefied petroleum gas rate.
That has again become a concern. “OMCs have reported that the under-recovery in diesel has currently crossed $10 per barrel," an official said.