Oil over troubled waters

What are under-recoveries of oil marketing companies? Under-recoveries are the difference between the price at which the oil marketing companies (OMCs) source their products from the oil refineries that is fixed on a trade parity basis, which is taken as their cost price, and that of the price realised from the sale of the products in the market. Under-recoveries are different from profit and losses, which also include other incomes like dividend income, pipeline income and profits from sale of freely-priced products.

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