Regardless of falling global oil prices due to banking turmoil in the US, there is hardly any chance of a fall in petrol and diesel prices in India. It would take longer for the oil marketing companies to recover their losses accumulated due to high crude prices earlier.
Constant domestic fuel prices amid rising prices of crude oil at the global level in past quarters resulted in huge losses to oil companies. The recent fall in global fuel prices is a chance for companies to recover their accumulated losses, reported CNBC-TV18, citing an anonymous government source.
Notably, the three fuel retailers, Indian Oil Corporation (IOC), Bharat Petroleum Corporation Ltd (BPCL), and Hindustan Petroleum Corporation Ltd (HPCL), haven’t revised petrol and diesel prices in line with the cost for the past 15 months till January this year, reported PTI citing a report.
The three companies also posted a net loss of ₹21,201.18 crore during April-September despite accounting for ₹22,000 crore announced but not paid LPG subsidy.
Europe is importing over 1 million barrels of Russian crude daily and has been doing so for the last month. Someone is stocking up before the taps turn dry.
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