Speculation on whether profit-making companies on petrol-diesel will cut prices

- Crude price is continuously below 80 dollars

- 11 rupees profit on sale of petrol and 6 rupees on sale of diesel

New Delhi: There is quite a possibility of a reduction in the domestic prices of petrol-diesel. The main reason for this is that the price of crude oil in the international markets is constantly below 80 dollars per barrel. Due to this, the government companies of the country are making significant profit on the sale of oil.

The state-owned oil company Indian Oil Corporation (IOC) has made a record profit of Rs 34,781.15 crore in the nine months or three quarters of the financial year 2023-24.

The petroleum marketing companies of the country are making a profit of 11 rupees on petrol and 6 rupees per liter on diesel. It will now be seen whether the oil companies cut petrol-diesel prices altogether or revert to their old policy of varying their retail prices. After April 7, 2022, government oil companies have not reduced the prices of petrol and diesel. In early 2022, crude oil prices remained largely volatile in the international market following the Ukraine-Russia war. In July 2022, the price of crude oil went up to 114 dollars per barrel. However, after that the prices of crude oil are continuously falling.

Talking about the current financial year, India paid the highest price of $93.54 per barrel in September 2023. While the lowest price per barrel was paid at 77.42 dollars. An average of $78.19 per barrel has been paid in the current financial year till January 2024. Its impact is evident on the outcome of the IOC.