NEW DELHI: India’s largest oil retailer Indian Oil Corp. will save up to Rs400 million a year from a cut in railway freight rates announced on Monday, its director of finance said.
Railways Minister Lalu Prasad Yadav said the cost of transporting petrol and diesel by rail would be reduced by 5% for the fiscal year 2007/08 as he presented the annual railways budget in parliament.
“Our annual freight bill on petrol and diesel is Rs7.5 billion and the freight rate cut will result in an annual saving on Rs350-400 million,” S.V. Narasimhan told Reuters.
Indian Oil, the country’s largest oil marketing firm with over 50% market share, transports 30% of its product volume by rail.