Oil marketing companies to bear latest oil price cut, not govt grant

OMCs have raked in record Rs 69K cr net profit in first 9 months of FY24

The decision by the three oil-marketing companies (OMCs) to reduce petrol and diesel prices after a record 22 months will be borne by the companies themselves, and not through a government grant, officials said.

Beginning March 15, prices of petrol and diesel were reduced by Rs 2 per litre, a move that analysts have said may reduce the annual revenue of OMCs by Rs 30,000 crore in 2023-24 (FY24).

“OMCs have delivered record-breaking profits every quarter in the current financial year (FY24). They have sought to reduce retail prices taking into account their revenue projections in the upcoming quarters. Therefore,