(Repeat for additional subscribers)
July 8 (The following statement was released by the rating agency)
Fitch Ratings says today in a new report that India's fuel under-recoveries in the financial
year to 30 March 2015 (FY15) are likely to be around INR1trn - more than 25% lower than FY14's
INR1.4trn, provided oil prices do not rise significantly. If production from Iraq is
affected due to unrest spreading to the south of the country, global oil prices
could materially increase.
The decline in the under-recoveries - the difference between the market price
and the price set by the Indian government - will be led by a drop in
under-recoveries for diesel, the price of which is being gradually increased by
Key developments to watch for over the coming months in the Indian national oil
sector include the policies of the new Indian government, the increase in the
share of the under-recoveries that upstream companies may have to bear and the
movement in global oil prices.
The report "India National Oil Companies Dashboard FY14" is available at
fitchratings.com or by clicking the link below.
Link to Fitch Ratings' Report: India National Oil Companies Dashboard FY14