Narendra Modi’s administration wants to keep oil prices under check to shore up popular support ahead of a series state elections this year. Photo: BloombergNew Delhi: India’s state-run oil retailers have been asked not to increase retail diesel and gasoline prices and absorb a part of the losses due to the recent recovery in global crude oil, people with knowledge of the matter said. Companies including Indian Oil Corp., Bharat Petroleum Corp. and Hindustan Petroleum Corp. will have bear a loss of up to Re1 per liter on sale of diesel and gasoline, the people said asking not to be identified as the matter is private. Prime Minister Narendra Modi’s administration wants to keep oil prices under check to shore up popular support ahead of a series state elections this year. The oil ministry has been asked to prepare subsidy payments at different price points in case of a further run up in oil prices.

Source: Mint April 11, 2018 10:30 UTC