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The Minister of Petroleum suggests the possibility of reducing gasoline prices in the coming days

Oil Minister Hardeep Singh Puri on Sunday hopes gasoline prices will soon be reduced. He said that as soon as the state-owned petrol marketing companies recouped their past losses, motor fuel prices would fall. His comments come at a time when state-owned oil companies such as Indian Oil Corporation (IOC), Bharat Petroleum Corporation Ltd (BPCL) and Hindustan Petroleum Corporation Ltd (HPCL) have not adjusted gasoline and diesel prices in the past year. the past 15 months.

Car table HT

Update on:
January 23, 2023, 09:32 am

Gasoline and diesel prices have been stable over the past 15 months.
Gasoline and diesel prices have been stable over the past 15 months.

The pricing of gasoline and diesel has not been adjusted as petrol companies are covering the losses incurred. Talking about the possibility of a price drop, Puri said that he hopes if the discount ends, the price will drop. “I expect if the sub-recovery (or losses) ends, the price will fall,” he said. The minister also said the Government did not ask them to keep the prices. “They did it alone,” he said.

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The drop in international crude oil prices from multi-year highs last year has resulted in oil and gas companies profiting from gasoline, but they continue to suffer losses from diesel.

At one point, the profit from gasoline was $10 per liter, but the subsequent increase in oil prices cut it by 50%. Meanwhile, losses to diesel extended to $13 liters from $10-11 earlier this month, PTI reported. The report also claims that the price freeze by oil marketing companies in India has resulted in record high losses of oil companies. $17.4 per liter for gasoline and $27.7 liters of diesel for the week ending June 24, 2022.

Gasoline and diesel prices have not been updated since April 6 last year. This strategy was implemented despite the increase in input crude oil prices from $102.97/barrel in that month to $116.01/barrel in June 2022 and falling to $82/barrel in January 2023. The report also adds that holding prices when input costs are higher than retail prices led to three companies posting net income losses. They reported posting a combined net loss of $21,201.18 crore from April to September 2022.

First published date: January 23, 2023, 09:32 AM IST


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