Govt may have to cut excise duty as price freeze hits oil firms' margins

No increase for 13 days even as crude oil prices soar globally

Marketing margins of oil companies have come under severe pressure with the government freezing the daily revision of petrol and diesel prices ahead of the Karnataka polls.

According to an industry source, the average marketing margin on petrol and diesel has gone down from Rs 3.5 a litre on April 1 to Rs 1.9 a litre on May 1 for Indian Oil Corporation (IOCL), Bharat Petroleum Corporation (BPCL) and Hindustan Petroleum Corporation (HPCL), a drop of about 45 per cent. 

Interestingly, the average Indian basket crude oil price zoomed 8 per cent from $63.76 a barrel in April to $68.88 a barrel