The rise in international crude oil prices and petrol and diesel margins over the past few weeks has pushed into the red the marketing margins of public sector oil marketing companies (OMCs, which are estimated to be incurring under-recoveries of Rs 7.4 per litre on sales of the two fuels, according to a recent report by Nomura.
According to industry insiders, high under-recoveries, in effect, dash the hopes of a cut in petrol and diesel prices, at least for the time being.
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