Actually, by cutting expenses, these businesses are making up for the huge losses they suffered last year when Petrol & diesel prices were higher than retail selling prices. In the nation, Petrol & diesel are sold at retail stores by Indian Oil Corporation (IOC), Bharat Petroleum Corporation Limited (BPCL), and Hindustan Petroleum Corporation Limited (HPCL).
Despite the increase in margin on petrol and diesel brought
on by the decline in the price of crude oil on the world market, their retail prices won’t alter until the public sector oil corporations recover from their losses from the previous year. These particulars were given by the officers. Since last year, daily fluctuations in the price of petrol and diesel have been prohibited by all three of the public sector petroleum corporations. Even the prices have not been updated to reflect their costs.
Actually, by cutting expenses, these businesses are making up
for the huge losses they suffered last year when crude oil prices were higher than retail selling prices. In the nation, petrol and diesel are sold at retail stores by Indian Oil Corporation (IOC), Bharat Petroleum Corporation Limited (BPCL), and Hindustan Petroleum Corporation Limited (HPCL).
According to officials, all three enterprises have had positive margins
on petrol sales since the third quarter of FY 2022–23, although even at that time, they were losing money on diesel sales. However, with a profit of 50 pence per liter last month, the petroleum industry’s profit margin on diesel also turned positive. However, this is insufficient to make up for the enormous losses experienced the previous year.
After the Russia-Ukraine War,
global crude oil prices rose to $ 139 per barrel in March 2022. However, these costs have now decreased to $75–76. Due to the high price of crude oil, oil companies lost Rs 17.4 per litre on gasoline and Rs 27.7 per litre on diesel. Due to the lowering of prices in the three-month period between October and December, oil companies made a profit of Rs 10 per litre on gasoline but lost Rs 6.5 per litre on diesel.
Following this, their margin on gasoline decreased
to Rs 6.8 per litre in the quarter from January to March 2023. On fuel, however, he received a profit margin of Rs. 0.5 per litre. Officials stated that in addition to making up for previous losses. The state oil corporations are also monitoring the question of whether the current low crude oil prices would last for an extended period of time or not. According to a representative of the government, “I believe the oil companies will decide to modify the retail prices of petrol and diesel only after monitoring the crude oil prices for at least one more quarter.”
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