Fitch Ratings says Indian fuel retailers could see widening credit strain if crude oil prices stay high for longer than expected. The agency warns that delaying fuel price adjustments can squeeze profits and reduce cash reserves. Fitch adds that the impact will vary across companies depending on how they manage operations and investments, with credit ratings most at risk from sustained, not temporary, price stress.
India has ruled out financial support for state-run fuel retailers that face losses from selling transport fuels below market prices. Even as prices rise for industrial customers and jet fuel for foreign carriers, retail rates for gasoline, gasoil, LPG, and jet fuel for Indian carriers remain unchanged. The government says the focus is protecting retail consumers.
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