Petrol, diesel price cut: Amit stories that petrol, diesel costs could also be lowered within the coming days, Union Minister for Petroleum and Natural Gas Hardeep Singh Puri has mentioned that international oil market is in a “highly turbulent” scenario and it has to stabilise earlier than any cut.
The Union Minister knowledgeable, “there has been no discussion with the oil marketing companies on any such issue” when requested if the federal government has held discussions with oil firms over gas price discount. Puri additional mentioned the oil firms make their very own choices of gas pricing.
“We are in highly turbulent situation. There are two areas on the global map which are in conflict situation,” he mentioned referring to the Russia-Ukraine conflict and the Israel-Hamas battle that has led to cargo ships being attacked within the Red Sea.
Petrol, diesel costs unchanged for report 21 month regardless of fluctuations in price
Three state-owned gas retailers — Indian Oil Corporation Ltd (IOCL), Bharat Petroleum Corporation Ltd (BPCL) and Hindustan Petroleum Corporation Ltd (HPCL) — which management roughly 90 per cent of the market, have saved petrol and diesel costs on freeze for a report 21 month in a row.
This is regardless of the uncooked materials (crude oil) value surging final 12 months, resulting in heavy losses within the first half of 2022-23 fiscal 12 months earlier than easing charges propelled them to profitability within the final three quarters.
The Union Minister mentioned 12 per cent of the worldwide delivery site visitors, 18 per cent of oil and 4-8 per cent of LNG commerce goes by way of the Red Sea and the Suez Canal.
“God forbid, if there is a further challenge or there is a disruption, you see an impact,” he mentioned.
International oil costs rebounded within the aftermath of the assault on ships within the Red Sea. The charges have nevertheless eased in subsequent days.
“In a highly volatile situation, our primary responsibility is to ensure availability and affordability,” Puri mentioned. “We are navigating this very carefully.” He mentioned oil firms do not ask the federal government about price revisions.
“Pray to god that there is no turbulence, things are normal,” he added.
While at present costs, oil firms are making some cash on petrol, and diesel — probably the most consumed gas accounting for nearly 40 per cent of all petroleum merchandise consumed within the nation — but it surely has been in a “touch-and-go” situation in current weeks.
On some days there’s revenue on diesel however on different days there’s loss. There isn’t any constant development. Three retailers had been recouping losses they incurred for holding charges when crude oil costs shot by way of the roof final 12 months.
In May, worldwide oil costs and retail pump charges had come at par, however the subsequent surge widened the gulf between value and price realised. For oil firms to scale back costs, oil costs must stabilise.
Petrol and diesel costs have been on a freeze since April 6 final 12 months. Petrol prices Rs 96.72 a litre within the nationwide capital and diesel comes for Rs 89.62 per litre.
The three companies made bumper earnings in April-September — the primary half of the present fiscal — however contemplating the low earnings of final 12 months, they’re but to recoup all losses, officers mentioned.
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