Crude Oil Price: Will government oil companies suffer losses after the rising price of crude oil? OMCs’ concerns increased due to Moody’s claim

Crude Oil Price: For a long time, there has been a tremendous increase in the price of crude oil in the international market. Despite the high price of crude, India’s three government oil companies Hindustan Petroleum Corporation Limited (HPCL), Bharat Petroleum Corporation Limited (BPCL) and Indian Oil Corporation Limited (IOCL) have not made any change in the prices of petrol and diesel. not done. In such a situation, the risk of reduction in profits of oil companies has increased. Moody’s has claimed in its report that due to the elections to be held in the year 2024, oil companies will not increase the prices of petrol and diesel. In such a situation, they will have to bear the burden of increased crude oil prices.

There was a huge decline in the profits of companies

Moody’s has also claimed in its report that there has been a huge decline in the profit margins of the three government companies that control 90 percent of the market in the country. This decline has been recorded in the first half of the financial year 2023-24. It is worth noting that a huge increase has been recorded in the price of crude oil in August and September 2023 and in this month the price of crude oil increased from $ 74 per barrel to $ 85 to $ 90 per barrel as compared to the normal month. Are. If this situation continues, then the profit margin of oil companies is likely to fall further in the second half as well.

There will not be much change in prices due to 2024 elections

Moody’s said in its report that due to the general elections to be held in India in the year 2024, government oil companies will not pass the burden of rising prices on the public. In such a situation, they will have to bear the burden of increased prices and this will reduce their profit margin. Along with this, it has also been said in this report that if the price of crude oil crosses $ 100 per barrel in the financial year 2023-24, then the oil companies will start incurring losses."text-align: justify;">It has also been said in this report that the credit metrics of OMCs are expected to be good this financial year. This will help oil companies maintain their credit quality. Along with this, if the government provides capital to the companies, then their credit quality will further increase. 

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