Indian refiners expect loss due to fuel subsidies

India’s three state-owned oil marketing companies (OMCs) are expected to collectively lose about Rs1.04 trillion (US$21.7 billion) from fuel subsidies in Fiscal year ending March 31, after a round of retail price cuts December 6, the research division of Indian ratings agency Credit Rating Information Services of India Limited (CRISIL) said on December 8. The companies, which are also major refiners, had experienced financial strain as international crude prices rocketed while the government maintained a lid on domestic product prices. The situation eased somewhat with a slide in global oil markets, but the latest product price revision is expected to contribute incremental under-recoveries of around Rs58.2 billion (US$1.21 billion), CRISIL estimated. (December 9, 2008)