Fuel Prices in India: Fuel retailers in the country are losing Rs 100 a litre on diesel and Rs. 20 on petrol on petrol as state-run firms such as HPCL and ONGC continue to protect consumers from volatility in oil prices by holding pump rates, according to an oil ministry official.
Fuel Prices in India Updates
Many sector experts and industry executives remarked that such volatility could not be maintained for long if the Middle East crisis prolongs and international oil prices remain above the range of $70-80 a barrel.
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They believe oil companies would partially pass on their revenue losses on diesel and petrol to consumers after assembly election results are announced. The last round of voting in the ongoing state assembly elections is on April 29.
Brent Crude Prices
Benchmark crude oil Brent that was trading at $72.87 a barrel before US Israel Iran war broke out on February 28 this year has now surged to $101.91 a barrel, an increase of 40 percent. On Thursday, Brent Crude was hovering over $103.
Recently, several websites claimed that diesel and petrol rates could be raised by Rs. 25-28 a litre after May 4. However, the Indian Petroleum Ministry was quick to refute these claims by saying the Union Government is not considering any such proposal as of now. The Ministry added that such news items are only designed to create panic and fear among the citizens and are nothing but misleading and mischievous.
Election Magic Or Pure Relief To Citizens?
On paper, diesel and petrol are deregulated fuels in India but the Indian government usually regulates their rates via IOC, BPCL and HPCL for political and economic reasons. The three oil marketing companies (OMCs) enjoy near monopoly in domestic fuel retail with a whopping market share of approximately 90 percent.
