Petrol and diesel may get cheaper as OMCs Become Profitable
Petrol and diesel prices in the country are expected to come down soon after remaining unchanged for over a year. The government has begun discussing ways to pass on the benefits of softening global crude prices to consumers before the 2024 Lok Sabha elections.
In contrast to peak losses of ₹17 per litre on petrol and ₹35 per litre on diesel in 2022, OMCs are now making a profit of ₹8-10 per litre on petrol and ₹3-4 per litre on diesel. According to the report, the oil ministry has already discussed crude versus retail price scenarios with OMCs. Since oil marketing companies (OMCs) are now making profits, the government has begun discussions on the matter to give some relief to the people.
The finance ministry and the oil ministry are pondering over the current crude oil price scenario. In addition to OMC’s profitability, they are discussing global factors.
Due to strong profits in the last three quarters, OMCs’ overall losses have narrowed. The combined profit of three OMCs – IOC, HPCL and BPCL – was ₹28,000 crore last quarter, the report further stated. Since OMCs’ under-recovery has ended, the government thinks that the consumers must also reap the benefits.
Earlier this week, oil prices fell on the back of concerns about a drop in demand and continued uncertainty over the depth and duration of OPEC+ supply cuts.
