Petrol diesel can become cheaper! Profit of government oil companies increased after reduction in crude oil prices.
After the huge fall in crude oil prices in the international market, the government has started preparations to provide relief to the common people from the expensive prices of petrol and diesel. The Finance Ministry and the Petroleum Ministry have started discussing among themselves regarding the reduction in the prices of both fuels. After the huge fall in crude oil prices, government oil marketing companies are making profits from selling petrol and diesel. In such a situation, the government is preparing to give direct benefits to the consumers by reducing the prices of petrol and diesel.
Crude oil slipped near 75 dollars
Brent Crude oil is currently trading around $75 per barrel. While WTI Crude is trading around $72 per barrel. Indian basket is around $76 per barrel. After the fall in the prices of crude oil in the international market, government oil companies are making a profit of Rs 8-10 per liter on selling petrol. Whereas the profit on selling diesel is Rs 3-4 per litre.
Government is brainstorming
After the huge fall in the prices of crude oil, the Finance Ministry and the Petroleum Ministry are discussing about the decline in the prices of crude oil in the international market, the profits of government oil companies and the global situation. The Petroleum Ministry has already discussed with the government oil companies regarding the retail prices of petrol and diesel after the fall in the prices of crude oil.
Profit of Rs 28,000 crore in the second quarter
It is a matter of relief for the government oil companies that on one hand there has been a huge fall in the prices of crude oil, while if we look at the profits made by the three government oil companies in the second quarter of the current financial year, then Indian Oil Corporation has earned Rs 13,713 crore, BPCL HPCL has made a profit of Rs 8501 crore and HPCL has made a profit of Rs 5827 crore. If all three OMCs are combined, these companies have made a profit of Rs 28,000 crore in the second quarter.
Preparation for big relief before elections!
In view of global signals, the government believes that in the coming days, crude oil prices may remain between 75-80 dollars per kg. In such a situation, consumers can be given relief by reducing the prices of petrol and diesel. Especially if diesel prices are cut, inflation can come down, which can benefit the current government and the ruling party in the 2024 Lok Sabha elections.
