Oil retailers to see no losses on diesel after September: Goldman Sachs

Global investment major Goldman Sachs has said Indian oil retailers will suffer no losses on diesel after a hike in prices in September.

"That would mean diesel prices charged by retailers could be market-priced by September," the investment bank said on Tuesday.

Prices of the fuel have cumulatively risen by Rs 11.24 per litre in 18 instalments since January 2013 when the previous UPA government had decided on small monthly hikes of 40-50 paise per litre till the losses, which are made good through government subsidy, are completely eliminated.  

Shares of oil retailers gained in morning trade on bourses after Brent crude hit a new 14-month low. While shares of Hindustan Petroleum Corp jumped 3 per cent, Bharat Petroleum Corp rose 2.6 per cent and Indian Oil surged 2.2 per cent.

(Reuters)