Petrol/diesel prices to go down soon? Oil minister Hardeep Singh Puri hints at possibility

Domestic gasoline and diesel prices may be cut but not before state oil companies recouped their previous losses, the Minister of Petroleum and Natural Gas, Hardeep Singh Puri recent suggestion at an event. “I expect if the sub-recovery (or losses) ends, prices will drop,” Puri said in a PTI report.

State-owned Petroleum Corporation of India, Bharat Petroleum Corporation Ltd and Hindustan Petroleum Corporation Ltd have not adjusted petrol or diesel prices in the past 15 months to match costs. Losses incurred during this period are currently being recovered. The recent drop in international crude oil prices from record highs in 2022 has led to an increase in petroleum profits but Ioss continues to lose money on diesel.
Petrol margins peaked at Rs 10 per liter, however, the subsequent price increase halved that profit. On the other hand, losses on diesel have increased to Rs 13 per liter from Rs 10-11 until early January 2023, industry sources said. According to Puri, these state-owned companies acted as responsible corporations by not burdening consumers with soaring energy prices following Russia’s invasion of Ukraine.

IOC, BPCL and HPCL remain unchanged fuel price Since April 6, 2022, although the cost of input crude oil increased at $102.97/barrel, by June it had decreased to $116.01/barrel and $82/barrel in January/ 2023. The price hold has left the three state-owned oil and gas companies with a combined net loss of Rs 21,201.18 between April and September 2022. Puri said the six-month loss figure is known and they must be restored. Meanwhile, the oil ministry is pushing for compensation to the three retailers to make up for the losses they have suffered.