India’s oil marketing companies (OMCs) may have received some temporary relief after the latest fuel price hike, but analysts believe the move is only a partial remedy for the mounting pressure on their balance sheets amid elevated crude oil prices.
Speaking to ET Now, energy analyst Yogesh Patil from Dolat Capital said the recent increase of Rs 3 per litre in fuel prices is “a very modest, small price hike” and is unlikely to fully offset the losses being incurred by the state-run fuel retailers. However, he noted that the step would still help reduce the daily financial strain faced by OMCs.
