There has been no change in the prices of petrol and diesel in the country for 20 months. Now, from the reports that have come out, it seems that we may see a reduction in fuel prices soon. According to an ET Now report, the government has started discussing ways to pass on the benefits of softening global crude oil prices to consumers before the 2024 Lok Sabha elections. After a loss of Rs 17 per liter on petrol and Rs 35 per liter on diesel in 2022, OMCs are now earning a profit of Rs 8-10 per liter on petrol and Rs 3-4 per liter on diesel. According to the report, the Oil Ministry has already discussed with OMC regarding crude oil and retail prices.
The report further said that since Oil Marketing Companies (OMCs) are now earning profits, the government has started discussing the matter to provide some relief to the people. The Finance Ministry and the Oil Ministry are considering the current crude oil price. The report says that apart from OMC profitability, they are also discussing global factors.
Why is fuel money expected to become cheaper?
OMC’s overall losses have reduced due to strong profits in the last three quarters. The report further said that the joint profit of three OMCs – IOC, HPCL and BPCL – was Rs 28,000 thousand crore in the last quarter. Since the under-recovery of OMCs has ended, the government is thinking that consumers should also get its benefit. Earlier this week, crude oil prices fell amid declining demand and uncertainty over extending OPEC+ supply cuts.
Earlier, Mint had reported quoting analysts that falling oil prices can help India in reducing inflation. He also said that the fall in oil prices will boost the Indian equity market, especially those sectors that use crude oil as raw material. On the contrary, some sectors may decline due to falling oil prices.
How much have crude oil prices become?
If we talk about the prices of crude oil, it has been below $80 per barrel for a long time. For the last one month, the average oil of Gulf countries is running below $80 per barrel. Whereas American oil prices have remained below the average price of $ 75 per barrel for a month. Oil from Gulf countries is below $75.99 per barrel on Monday. Whereas the price of American oil is trading at $ 71.34 per barrel.
Source: www.tv9hindi.com
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