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Subsidy policy to hit OMCs

Subsidy policy to hit OMCs

Oil marketing companies’ (OMC) profitability and cash flows will continue to be strained on account of uncertainty over the future subsidy sharing pattern. Crude oil recovers prices have surged above the $100-a-barrel mark. Higher crude prices would translate into higher gross under recoveries for upstream oil companies as the government does not seem to be in a situation to raise fuel prices and carry forward its de-regulation plan.

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