OMCs can hike diesel price till under-recovery hits Rs 6/l

Despite Thursday’s terse government directive, public sector oil marketing companies (OMCs) are unlikely to be allowed to nullify their under-recoveries on the sale of diesel, the fuel that accounts for about 60% of the gross oil subsidy bill. These firms will be given the freedom to hike retail prices of diesel only till the under-recovery is reduced to R6 a litre (it is R9.10/litre at present), official sources told FE.

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