Crude became 31 percent cheaper in 15 months, oil companies made profit of Rs 31 thousand crores
New Delhi (EMS). The central government has given relief by reducing the price of domestic cooking gas cylinder by Rs 200. However, the prices of petrol and diesel, the second biggest need of the common man, have remained the same for the last 15 months. Government oil companies last reduced excise duty on petrol by Rs 8 and diesel by Rs 6 per liter on 21 May 2022. Due to this, the prices of petrol and diesel were reduced by Rs 9.5 and Rs 7 respectively. Then crude oil was $109.51. After this, in June 2023, they fell by 31.57 percent to below $75, but petrol and diesel did not become cheaper.
The companies argue that they had to suffer huge losses in making petrol and diesel by purchasing expensive crude oil in 2022. Right now its compensation is going on. The three government oil companies also suffered a loss of Rs 16,700 crore in the April-June quarter of 2022-23. However, now the picture has changed. In the April-June quarter of 2023-24, these oil companies have made an unprecedented profit of Rs 31,159 crore. Experts say that oil companies have scope to cut petrol-diesel by Rs 5 to 6.
Rs 5 can be deducted immediately
Reducing inflation is the biggest issue for the government. Currently, the price of petrol in Delhi is Rs.96.72. and Diesel is Rs.89.62/Litre. In such a situation, the price of both the fuels can be reduced by Rs 5 per litre. Actually, oil companies have made huge profit in buying crude oil since last one year. In the first quarter of 2022, crude oil was $ 131 per barrel in the world, but we got it from Russia at $ 99. In the first quarter of 2023, i.e. between April-June, Saudi Arabia and UAE were selling oil to us at a price of $ 86 per barrel. In the international market it was $77.7. We got this oil from Russia for less than 70 dollars. This means that oil companies are still getting this oil at a discount of $ 8.8 per barrel. Union Petroleum Minister Dr. Hardeep Singh Puri himself has asked oil companies to reduce prices.
perfect time to cut
According to Bloomberg economists Samiran Chakraborty and Bakar A Zaidi, after LPG, this is the right time to cut the prices of petrol and diesel. The government’s view regarding inflation is very clear. Just as tomatoes were made cheaper by import, LPG prices were reduced, now the focus is on petrol and diesel. Oil companies, which are making huge profits, are in a position to reduce the prices of petrol and diesel.
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