In a bid to get better previous losses, the state-run oil corporations may not instantly raise the six-month-long freeze on every day pricing of car gas charges, despite a virtually 30 per cent decline in common worldwide prices of petrol and diesel from the June peak, Livemint reported.
International oil prices have seen a pointy fall over the previous 4 weeks. As a consequence, there was a discount in prices of economic liquefied petroleum fuel, aviation turbine gas (ATF) and taxes on windfall good points.
Oil advertising and marketing companies (OMCs) in the general public sector are nonetheless experiencing monetary losses.
Because of the volatility in the world oil market, they can’t afford to right away return to the system of every day fluctuations in the pump pricing of the auto fuels.
According to official information, India’s common crude oil import price decreased by roughly 22 per cent to $90.71 per barrel in September from its peak of $116.01 in June. Product prices dropped much more drastically. While the common petrol price decreased by 37 per cent from $148.82 per barrel in June to $93.78 per barrel in September, the lower for diesel is 28 per cent, from $170.92 per barrel in June to $123.36 per barrel in September.
The state-run OMCs together with Indian Oil Corporation (IOC), Bharat Petroleum Corporation Limited (BPCL) and Hindustan Petroleum Corporation Limited (HPCL) are making about Rs 3-4 per litre margin on the sale of petrol, however the good points in diesel are nonetheless negligible, the livemint reported.
The authorities is more likely to assessment the monetary situations of OMCs and take the mandatory step accordingly.
India presently imports 85 per cent of crude it processes, making it the third-largest shopper of crude oil in the world, behind the United States and China.
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