'No decisions yet on capping refinery prices': Sujata Sharma

New Delhi: The government has not taken any decision on capping refinery prices, said Sujata Sharma, a joint secretary in the oil ministry, responding to reports that such a move was being considered to protect fuel retailers who are currently selling at the pump at negative margins.

A media report had suggested that state-run oil companies were considering buying fuels from other state and private refiners at a discount to international prices. At present, state oil companies-which both refine crude and retail fuels-sell refined products to their retail arms at international prices. They also pay international prices to other refiners for the volumes they procure from them for retailing.Also read: Auto industry warns diesel truck fleet could be immobilised

The Iran war has sent refining margins soaring, but domestic pump prices have not risen, leaving retailers with negative marketing margins. To address this, state oil companies are weighing the option of paying less to other state and private refiners, according to the report. However, such a move cannot be implemented without government approval.


India has ample crude, and refiners are operating at high capacity, Sharma said, adding that LPG supply is a matter of concern.

Also read: Homeward Ho! Indian professionals in West Asia looking east

One LPG carrier, Shivalik, which crossed the Strait of Hormuz early Saturday, reached Mundra Port on Monday. The other LPG carrier, Nanda Devi, will reach Kandla on Tuesday, said Rajesh Kumar Sinha, special secretary in the ministry of ports, shipping and waterways.

India is making efforts to enable more of its oil and gas carriers stuck in the Persian Gulf to cross the strait, the official said.