Yogesh Patil decodes why petrol, diesel prices may rise further

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.

Yogesh Patil decodes why petrol, diesel prices may rise further. 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. According to Patil, the latest revision could reduce losses by nearly Rs 141 crore per day and offer some relief on the working capital front. Yet, he stressed that much steeper hikes...