India's largest oil marketing company Indian Oil Corporation (IOC) expects to save Rs40crore a year from a cut in railway freight rates announced day.
S.V. Narasimhan, IOC's director, finance, Reuters, that "Our annual freight bill on petrol and diesel is 7.5 billion rupees and the freight rate cut will result in an annual saving on 350-400 million rupees," told Reuters.
Railways Minister Lalu Prasad Yadav said the cost of transporting petrol and diesel by rail would be reduced by 5 percent for the fiscal year 2007/08 as he presented the annual railways budget in parliament.
Indian Oil, the country's largest oil marketing firm with over 50 percent market share, transports 30 percent of its product volume by rail.