In the year 2023, a big reduction in the price of crude oil has been seen. Brent crude oil prices are also trading at $75 per barrel. At the same time, the supply of discount oil coming from Russia has reached a record level. Even after that, no change has been seen in the price of petrol and diesel in the country. But now it seems that people will finally start getting cheap fuel. The officials of oil marketing companies have expressed their opinion on this. He has given clear indications when will the price cut of petrol and diesel be seen. Let us also tell you what kind of statements have come out from the OMCs in this regard.
Petrol and diesel prices are freeze last year
Officials of government oil companies have made it clear that after increasing the margin on petrol and diesel due to the fall in the international price of crude oil, reduction in their retail price will be seen only when their reduction from last year is completed. All the three OMCs have banned the change in fuel price since last year. The price has not been revised by the companies according to their costing. In fact, last year the price of crude oil in the international market was more than the retail fuel, due to which the OMCs suffered a lot. Now that the prices of crude oil have come down, she is trying to make up for her loss by not reducing the fuel price. The country’s Indian Oil Corporation, Bharat Petroleum Corporation Limited and Hindustan Petroleum Corporation Limited companies sell petrol and diesel in retail.
Since when are companies in profit on petrol
According to the information, all the three government companies had come to profit on Petron from the third quarter of the last financial year. On the other hand, even then the companies were incurring losses on diesel. At the same time, since last month, oil companies have come to a profit of 50 paise per liter on diesel as well. Companies say that it is difficult to make up for last year’s loss with the amount of profit they are making at present. In March 2022, after the Russia-Ukraine war, the international price of crude oil reached $139 per barrel. In which since then there has been a decrease of about 50 percent i.e. 60 to 70 dollars per barrel. Currently trading at 75 to 76 dollars per barrel. If we talk about the year 2023, then the price of crude oil has come down by 12 percent.
How margin is increasing after loss
Oil companies were incurring a loss of Rs 17.4 per liter on petrol and the same loss on diesel was Rs 27.7 per liter due to high crude oil prices in the international market. In the third quarter of the financial year, there was a reduction in the prices of crude oil and companies started making a profit of Rs 10 per liter on petrol, but even then there was a loss of Rs 6.5 per liter on diesel. In the fourth quarter, the profit on petrol came down from Rs 10 to Rs 6.8 per liter, but on diesel, the profit of 50 paise per liter started.
When can petrol and diesel become cheaper?
If the officials are to be believed, along with making up for last year’s loss, government oil companies are keeping an eye on crude oil prices. The reason for this is the production cut announcements made by OPEC countries and Russia and other allied countries. Officials say that they want to keep an eye on oil prices for another quarter. If during that time the prices of crude oil remain around the current level, then a decision can be taken to cut the prices of petrol and diesel.