Fuel price reset: How should we value oil marketing companies now?
The big worry now is that OMCs will need to pay up their share of the subsidy bill, which is likely to burgeon if petrol and diesel prices aren't allowed to move with market rates
If Life Insurance Corporation of India (LIC) is willing to dish out more than ₹ 20,000 crore to bail out IDBI Bank Ltd, what is a few thousand crore rupees shared by three large oil marketing companies (OMCs) to help the government lower fuel prices? Apparently, it’s worth a lot. With unlisted LIC, there is no way of knowing what the Street thinks of the government’s penchant for looking to the insurance giant for help. Not so with Indian Oil Corp. Ltd, Bharat Petroleum Corp. Ltd and Hindustan Petroleum Corp. Ltd, all of which are listed.