Petrol, Diesel Price To Rise? Fuel Retailers Raise Red Flag Over Oil Prices

Petrol Price | New Delhi: The oil prices in international markets have stayed at a high level for weeks now. As of June 19, the Brent crude oil price was $113.1 per barrel. It was over $120 per barrel a few days ago. Amidst this, private fuel retailers in the country have sought government intervention in boosting the investment in the oil retail business as they are selling the fuel well below its cost.Also Read – Petrol Selling at Rs 180/L in Pakistan After Govt Lifts Subsidy. Details Here

According to reports, the Federation of Indian Petroleum Industry (FIPI) stated that they have been selling petrol at Rs 14-18 below the cost per litre and diesel at Rs 20-25 below the cost price per litre. The body counts IOC, BPCL, HPCL and other private sellers as its members. Also Read – Edible oil Prices to Go down as India Allows Duty-Free Import of 20 Lakh Tonn of Crude Soyabean, Sunflower Oils

Why are they concerned about the fuel price?

In India, 90 per cent of the oil market is controlled by government-owned oil companies like IOC and BPCL. They have frozen the petrol and diesel rates at a certain rate for the ease of customers. However, as the Brent crude prices have stayed inflated, companies have been facing losses. According to a report by Mint, FIPI Director-General Gurmeet Singh said that the under-recoveries continue ‘to be very high in a range of Rs 20-25 per litre for diesel and Rs 14-18 per litre for petrol’. Also Read – Petrol at All-time High of ₹420/litre in Crisis-hit Sri Lanka; Schools Closed, WFH Advisory Issued | 3 Key Developments

Petrol, Diesel prices have stayed frozen since April 6. FIPI wrote in a note, “This resulted in rapid diversion of bulk diesel (direct consumers) sales to retail outlets amounting to widening of losses incurred by private fuel retailing companies.”