Fuel Prices Likely To Come Down As Crude Gets Cheaper, Oil Companies Make Profit

Oil marketing companies last reduced the prices of petrol and diesel in April 2022.

Fuel Prices: Petrol-diesel prices can be reduced by Rs 10 a litre as crude oil prices have gone down by 15% in the last year. Crude oil had become cheaper by 35% on July 10 but there was no reduction in the price of petrol and diesel. Oil marketing companies last reduced the prices of petrol and diesel in April 2022, reports bhaskar.com.

Oil Companies Earning Three-Fold Profit

Currently, petrol is above Rs 100 and diesel is above Rs 90 per liter in most parts of the country. Meanwhile, the profits of Indian Oil (IOC), Bharat Petroleum Corporation (BPCL) and Hindustan Petroleum Corporation (HPCL), three government companies doing retail business of petroleum, have almost tripled. The biggest reason for this is that these companies are currently earning around Rs 10 per litre.

What Does CRISIL Say

IOCL, HPCL, and BPCL will earn a profit of 1 lakh crore this year.

According to the results that came on Friday, Indian Oil earned a profit of Rs 13,750 in the April-June quarter. Last year, there was a loss of Rs 1,992 crore in these three months.

The profits of IOCL, BPCL and HPCL will exceed Rs 1 lakh crore in 2023-24.

Between 2017 and 2022, these companies earned an average profit of 60 thousand crores annually.

Their total profit is expected to triple from Rs 33,000 crore by 2022-23.

Oil Companies Have Scope To Reduce Fuel Price

Upasana Bhardwaj, a senior economist at Kotak Mahindra Bank, says that oil marketing companies are currently earning around Rs 10 per liter on petrol and diesel. From this point of view, they have enough scope to reduce their prices. Doing this will benefit the economy, reports bhaskar.com.

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