Will petrol and LPG prices rise? Crude oil crosses $126
NEW DELHI: Rumours are growing that petrol prices may be increased after the election results are announced in states, including Kerala and West Bengal. The price of crude oil has crossed $126 per barrel due to tensions in West Asia. Oil companies are reportedly facing heavy financial losses.
These companies are putting pressure on the central government to increase the prices of petrol, diesel, domestic LPG, and aviation turbine fuel (ATF). They have also demanded that if prices are not raised, the government should compensate for their losses. The stand of the Modi government will be crucial in this matter.
On February 28, global crude oil prices were around $73 per barrel. Recently, it has crossed $126. In India, prices have been increased only for premium petrol, bulk diesel, and aviation turbine fuel used in international flights.
However, Sujata Sharma, Joint Secretary in the Petroleum Ministry, said that there is currently no move by the central government to increase the prices of petrol, diesel, or domestic LPG, as there is sufficient stock available.
Daily losses of Rs 2400 crore
- Public sector oil companies are facing daily losses of around Rs 2,400 crore
- Loss per litre is estimated at Rs 20 for petrol and Rs 100 for diesel
Inflation concerns If prices are increased, it may improve the financial position of oil companies. However, such a move could lead to inflation and negatively impact the economy. The central government is already spending heavily on subsidies for LPG and fertilisers.
"The recent hike in commercial LPG prices was due to global factors. The central government is keeping the prices of LPG, petrol, diesel, and piped natural gas under control." -Prahlad Joshi, Union Minister