petrol diesel price increase
Sharp Rise In Crude Oil Prices : Petrol And Diesel Prices To Increase In India Before May 15 ! The ongoing unrest in West Asia is still affecting the entire world. Meanwhile, such news has come to light that will make you worry. Petrol and diesel prices may increase again. This increase is expected before the 15th. According to sources, the ongoing conflict in West Asia has led to a sharp increase in crude oil prices. This has created considerable financial pressure on oil companies (OMCs).
Crude oil prices are on the rise in the international market. It has increased from $70 per barrel to $126. But petrol and diesel prices in the domestic market have remained stable. In such a situation, the losses of state-owned oil companies are increasing. In the future, some part of this burden may have to be borne by consumers. According to a source, petrol and diesel prices may increase in India before May 15.
Sujata Sharma, Joint Secretary, Ministry of Petroleum, said that the monthly loss of the country’s state-owned oil companies on the sale of petrol, diesel and LPG has reached Rs 30,000 crore due to the increase in crude oil prices in the international market. To limit the impact of the increased international prices, the central government had reduced the excise duty on petrol and diesel by Rs 10 per liter in late March. Due to this, the oil state-owned companies are suffering huge losses.
Sharma said that the government is losing about Rs 14,000 crore in revenue every month due to the reduction in excise duty. If the government had not reduced excise duty, the losses of the three state-owned oil companies on fuel sales would have been even higher, Sharma said.
The blockade of the Strait of Hormuz has halted 20% of the world’s oil transport. Despite these external shocks, petrol and diesel prices in India have remained stable. There is no coordination between retail prices and increased production costs. Both the government and the oil marketing companies are bearing the burden equally. The government and the oil companies are losing up to Rs 24 per litre on petrol.
Similarly, the loss on a litre of diesel is Rs 30. According to sources, if the price hike is approved, then the price of petrol and diesel per litre may increase by Rs 4-5 and that of domestic LPG cylinder by Rs 40-50. If this happens, it will be a major correction in the prices of both the fuels in four years.
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