Give this, getting the OMCs to share some of the burden of high oil prices is easier. In the run-up to the Gujarat assembly elections at 2017-end, OMCs hadn’t fully passed on the impact of higher crude oil prices to consumers. Give this, getting the OMCs to share some of the burden of high oil prices is easier. “In the recent past, the bulk of this unmet under-recoveries has devolved on upstream state-owned enterprises who shared ~92% of the unmet under-recoveries in FY09-16 but this could now change,” said Jefferies. While how this plays out remains to be seen, currently, lack of clarity on gross under-recoveries and sharing of the unmet under-recoveries remains.

Source: Mint April 12, 2018 04:41 UTC