Unlike the significant losses experienced previously, which reached ₹17 per liter for petrol and ₹35 per liter for diesel in 2022, oil marketing companies (OMCs) are presently recording profits of ₹8-10 per liter for petrol and ₹3-4 per liter for diesel.
Anticipated reduction in petrol and diesel rates in the nation after a prolonged period of stability. Discussions have commenced within the government on methods to transfer the advantages of declining global crude prices to the public ahead of the 2024 Lok Sabha elections, as per a report from ET Now.
The finance ministry and the oil ministry are deliberating on the current circumstances surrounding crude oil prices. Alongside assessing the profitability of Oil Marketing Companies (OMCs), they’re examining various global factors, as highlighted in the report.
The expectation for a decrease in fuel prices stems from the remarkable profits OMCs have accrued over the last three quarters, notably reducing their overall losses. The collective profit of three major OMCs—IOC, HPCL, and BPCL—amounted to ₹28,000 crore in the preceding quarter, as per the report’s details. With the conclusion of OMCs’ under-recovery phase, the government believes it’s time for consumers to enjoy the resulting benefits.
This week, oil prices witnessed a decline due to apprehensions surrounding decreased demand and continued uncertainty over the extent and duration of supply cuts by OPEC+. A Reuters survey indicated a dip in OPEC oil output for November, marking the first monthly decrease since July. This drop resulted from reduced shipments from Nigeria and Iraq, combined with sustained market-driven cuts implemented by Saudi Arabia and other members of the broader OPEC+ alliance.