Is BPCL privatization in trouble? What is the government saying – 23 Mar 2022

The crude oil price hike and the subsequent inability to push through a hike in retail prices of petrol and diesel has come a dampener to those who are bidding for BPCL.

Unlike Nayara and RIL, both of whom can find international markets for their products in case the domestic market shuts down, BPCL is heavily tuned to the Indian market via thousands of retail outlets

The inability to raise prices at will or in consonance with crude oil price movements will be a problem going ahead for any private investor looking to own BPCL, for unlike its public sector counterparts, as a private entity BPCL will not be entitled to disbursement of subsidies, if any, for keeping prices below cost of production

So what is the latest government position on the privatization of BPCL?