Winning Bizness Desk

Mumbai. Crude oil in the international market is still trading around $105 per barrel. Crude oil has consistently remained above $ 100 per barrel, but since April 6, state-owned oil companies (OIl Marketing Companies) have not increased the prices of petrol-diesel. Due to which the three state-owned oil companies are incurring huge losses. According to a report, the three state-owned oil companies are expected to incur a loss of about Rs 10,700 crore in the April-June quarter due to selling petrol and diesel at below cost prices.

Loss of Rs 12 to 14 per liter

Brokerage house ICICI Securities has said in its report that the three state-owned oil companies Indian Oil (Indian Oil), Bharat Petroleum (BPCL) and Hindustan Petroleum (HPCL) have suffered a loss of Rs 12-14 per liter on selling petrol and diesel. These three companies occupy 90 percent of the market in the country by selling petrol and diesel in the retail market. In fact, the three state-owned oil companies will soon announce their financial results for the first quarter of 2022-23. In which it can be told that how much loss they are incurring by selling petrol and diesel at a price below the cost.

No change in petrol and diesel prices from April 6

Due to the Russo-Ukraine war, the price of crude oil in the international market went up to $ 139 per barrel. After the results of the assembly elections in five states including Uttar Pradesh, from March 22, 2022 to April 6, state-owned oil companies increased the prices of petrol and diesel by about Rs 10. But the common people had to bear the brunt of expensive fuel. When there was a tremendous increase in inflation, the companies increased the prices of their products due to the increase in the transportation cost. In April 2022, the retail inflation rate reached 7.79 percent, as a result of which the RBI had to increase the repo rate twice. After this, on May 21, the central government decided to reduce the excise rate on petrol and diesel so that the common people could be given relief from inflation. But the oil companies have not got any relief from this. Despite buying crude oil at a higher price, they have to sell petrol and diesel at a price below the cost.