Driving the wrong way

The public sector oil marketing companies are bleeding due to large under-recoveries on account of diesel. They have been waiting for the government to raise their prices. Since the under-recovery on petrol is around one-tenth that on diesel, the recent appeal by the chairman of the Indian Oil Corporation (IOC) to the government to reintroduce administered pricing for petrol may seem bizarre. Yet, it is indicative of a lack of coherence in the government's policies.

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