No respite for oil marketing companies in trade after reports that the government is nudging them to absorb a one rupee hike in every litre of petrol or diesel.

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As far as news report is concerned, we don’t have any inputs to suggest that there is a reason for us to absorb cost, said MK Surana, CMD of HPCL said.

Talking about margins, he said, “It’s not a question of peak margin or a margin. The prices are determined based on the day-to-day international product prices in a rolling basis of 15 days. So on a particular day when the crude prices are going up, it doesn’t mean that it reflect in the product prices on that day because it is a rolling average of 15 days past. So how past 15 days has performed will determine the price on that day – that’s one thing. Second, the crude prices and fuel prices doesn’t move in tandem always.”

According to him, it’s reasonable for government to ask oil marketing companies (OMCs) to keep consumers' interests in mind.

- Structurally it does not justify that crude prices should be going substantially higher.

- If there are no geopolitical adverse situation, I feel it should rebound.

- perception that OMCs are making huge profit on fuel sale is incorrect