Costs rise for oil marketing companies (OMCs) when the cost of land goes up, MK Surana, chairman and managing director of Hindustan Petroleum Corporation (HPCL), told CNBC-TV18. He further said that discussion is in place currently with city gas distribution companies with regards to a commission rate.

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“The cost of land etc., goes up and therefore, the cost to oil marketing companies, on the outlet, also goes up along with other costs and therefore, the CNG charges also cannot remain the same and it has to move up in line with that because ultimately it is the cost which we are incurring and we need to recover from various types of fuels which we are selling at our stations and there are some discussions between oil marketing companies and the CGD companies and some settlement reached on that. Therefore, I would not like to tell you what it is and what it is not but there is some amount of convergence on that,” said Surana.

For the entire interview, watch the video