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Fuel price slide leads to confusion over margin maths of oil marketing cos

On Wednesday, prices of petrol touched a 15-month of Rs 68.65 a litre in Delhi, while diesel was seen at Rs 62.66 a litre

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In October, finance ministry had cut its production tax on the fuels by Rs 1.50 a litre and had asked OMCs to reduce their marketing margins by Rs 1 a litre to insulate consumers from a surge in global oil prices at the time | Photo: Reuters

Shine Jacob New Delhi

Last Updated : Jan 03 2019 | 2:46 AM IST

On October 4 last year, oil marketing companies (OMCs) had absorbed Rs 1 as marketing margin on the prices of petrol and diesel after international crude oil prices crossed $80 a barrel.

But despite crude price dipping to around $53 a barrel on Wednesday, down 33 per cent from the October high, there is still lack of clarity on whether Indian Oil Corporation (IOC), Bharat Petroleum Corporation Ltd (BPCL) and Hindustan Petroleum Corporation Ltd (HPCL) stopped absorbing Rs 1 as marketing margins.

On Wednesday, various reports by OMCs and media firms added to the confusion. “OMCs are having gross marketing

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