News Karnataka
Wednesday, April 17 2024

Oil Companies May Cut Petrol, Diesel Prices By ₹5-10 Next Month

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State-owned oil companies may contemplate a reduction in the prices of petrol and diesel next month following the release of their third-quarter results. It is anticipated that these results will reveal a combined net profit exceeding a record ₹75,000 crore, buoyed by softening costs of acquiring crude oil. Sources suggest that the public sector fuel retailers, who have maintained stable prices since April 2022, are on the verge of conducting a comprehensive pricing review.

Officials indicate that the oil marketing companies (OMCs) could be holding margins of ₹10 per liter, which might be passed on to consumers. Such a move could potentially alleviate inflation concerns, gaining significance in the lead-up to the 2024 General Elections. The three OMCs are expected to base their decision on the Q3 results, likely to be disclosed by the end of the month, considering a reduction in petrol and diesel rates by an estimated ₹5 to ₹10 per liter. This decision would also factor in a precautionary cushion for potential future spikes in international oil prices.

As the government holds the role of promoter and majority stakeholder in all three OMCs, the combined net profit for the first half of 2023-24 has already witnessed a substantial increase, totaling ₹57,091.87 crore. This represents a remarkable 4,917% surge compared to the combined net profit for the entire financial year of 2022-23, which stood at ₹1,137.89 crore.

Hindustan Petroleum Corporation Ltd (HPCL) has announced that it will disclose its Q3 results on January 27, with Indian Oil Corporation (IOC) and Bharat Petroleum Corporation Ltd (BPCL) expected to make similar announcements around the same time. Despite email queries, responses from IOC, BPCL, HPCL, and the petroleum ministry are currently pending.

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