Centre directs oil companies to reduce prices of petrol and diesel, two private companies reduce one rupee

NEW DELHI: The prices of fuel products which remained unchanged for more than a year in the country is likely to be reduced. Reports said the centre demanded the oil companies to reduce the fuel prices. Oil companies like Indian Oil, BPCL and HPCL have been asked to reduce the prices. The Centre’s demand is based on the calculation that the losses of the fuel companies have been recovered to some extent.

35 dollars per barrel decreased
Fuel prices in India remain unchanged from May 2022. During this period, the fuel price has fallen by more than 35 dollars per barrel. Oil companies got huge profits through this.

However, the oil companies are of the stand that they have not recovered the huge losses incurred during the Covid period. The companies point out that despite the increase in global crude oil prices during election days in some states, oil companies had to suffer losses without increasing fuel prices in the country. Three companies namely the Indian Oil, BPCL and HPCL incurred a loss of Rs 18,622 crore. However, with increasing pressure from the central government, the oil companies are likely to reduce prices.

Companies benefit
However, in March, the oil companies got a huge profit. All the oil companies in the country made a profit of around Rs 20,000 crore. Good profit is expected in June as well. Meantime, HPCL got a loss of Rs 9,000 crore on a standalone basis in FY 2023. However, when compared to the previous quarter, the company's net profit increased by 79%. The net profit of Indian Oil Corporation and Bharat Petroleum has increased by 52% and 168% respectively during the same period.

Jio, Nayara reduce price
Private oil supply companies Nayara Energy and Reliance's Jio-BP have been selling petrol and diesel at one rupee less than the market price considering the reduction in the prices of crude oil. The decision of these companies is to continue the sale at a lower rate than the price of public sector companies till the end of this month.