Varanasi: Oil Minister Hardeep Singh Puri on Sunday urged state-run oil companies to consider reducing fuel prices if international crude prices stabilize in the coming days and clear their losses. Puri told reporters, “I would request the oil companies (state fuel retailers) that in the coming days, if international oil prices remain under control and their under-recovery ends, they can buy some (fuel).” You can see a reduction in prices. sunday.
But it is too early to expect a cut as trade data shows companies are making a profit of Rs 5 on a liter of petrol but are still incurring a loss of around Rs 13 on diesel.
This is a marked improvement from when losses on petrol per liter widened to Rs 17.4 and diesel to Rs 27.7 in June last year as oil and product prices shot above $100 a barrel following Russia’s invasion of Ukraine. but pump prices remained unchanged.
Puri said fuel prices have remained stable as public sector retailers, as “good corporate citizens” have decided to pass the burden on to consumers by raising pump rates. For good measure, he added “The government didn’t ask them to keep the price. The pricing is decided by them. They don’t listen to me.”
He said that the government has also reduced excise duty twice to reduce the central tax on petrol and diesel by Rs 13 and Rs 16 respectively. He said, ‘The states which have BJP government also reduced VAT, but other states did not. Even today you will find a difference of Rs 10 (between prices in BJP and non-BJP ruled states),” Puri said.
three state-owned retailers – IndianOil, BharatPetroleum and Hindustan Petroleum Fuel prices have not been revised since May 22 last year, when excise duty was reduced for the second time in 2022.
Benchmark Brent crude, which has a weighting of about 25% in the crude mix bought by Indian refiners, was at $115 a barrel at the time, but has since softened to $87. 63, remaining range-bound below the $90 mark in recent weeks.
The cap on pump prices caused the three retailers to post a combined loss of Rs 21,201 crore during the April-September period against a central grant of Rs 22,000 crore meant to cover losses on LPG, or domestic cooking gas. There was a central grant for the same, which was announced but has not yet been paid. ,
But it is too early to expect a cut as trade data shows companies are making a profit of Rs 5 on a liter of petrol but are still incurring a loss of around Rs 13 on diesel.
This is a marked improvement from when losses on petrol per liter widened to Rs 17.4 and diesel to Rs 27.7 in June last year as oil and product prices shot above $100 a barrel following Russia’s invasion of Ukraine. but pump prices remained unchanged.
Puri said fuel prices have remained stable as public sector retailers, as “good corporate citizens” have decided to pass the burden on to consumers by raising pump rates. For good measure, he added “The government didn’t ask them to keep the price. The pricing is decided by them. They don’t listen to me.”
He said that the government has also reduced excise duty twice to reduce the central tax on petrol and diesel by Rs 13 and Rs 16 respectively. He said, ‘The states which have BJP government also reduced VAT, but other states did not. Even today you will find a difference of Rs 10 (between prices in BJP and non-BJP ruled states),” Puri said.
three state-owned retailers – IndianOil, BharatPetroleum and Hindustan Petroleum Fuel prices have not been revised since May 22 last year, when excise duty was reduced for the second time in 2022.
Benchmark Brent crude, which has a weighting of about 25% in the crude mix bought by Indian refiners, was at $115 a barrel at the time, but has since softened to $87. 63, remaining range-bound below the $90 mark in recent weeks.
The cap on pump prices caused the three retailers to post a combined loss of Rs 21,201 crore during the April-September period against a central grant of Rs 22,000 crore meant to cover losses on LPG, or domestic cooking gas. There was a central grant for the same, which was announced but has not yet been paid. ,