Nayara Energy, Reliance Industries, Shell likely to join OMC price cuts

The decision to absorb Re 1 a litre on petrol and diesel by the three state-run OMCs will also lead to a cut in prices by the private companies

It is a David versus Goliath scenario that private sector fuel retailing companies — Reliance Industries (RIL), Nayara Energy (former Essar Oil), and Shell — are in.

The decision to absorb Re 1 a litre on petrol and diesel by the three state-run oil marketing companies (OMCs) will also lead to a cut in prices by the private companies. The latter were investing aggressively on retailing in the segment since the decontrol of diesel prices in October 2014. RIL, the only listed company among these, is expected to have an impact of Rs 4-5 billion on profit after tax, said