Common people may get great relief in the coming days. Lok Sabha elections It is expected that the prices of petrol and diesel will be reduced before 2024. If this happens, then there will be a reduction in the prices of diesel and petrol in the country after about 21-22 months.
Icra's hopes increased due to this fact
Cheap diesel and petrol. This expectation has increased due to a recent report by domestic credit rating agency ICRA. ICRA's report shows that in recent weeks, the margins of Indian oil marketing companies from selling fuel have increased and these government oil companies are making huge profits. This is because the prices of crude oil have fallen. In such a situation, people can get the gift of cheap petrol and diesel before the elections.
Oil companies are earning so much profit
Girish, Group Head and Senior Vice President of Corporate Ratings of ICRA Limited. Kumar Kadam says that according to ICRA's estimates, oil market companies have made a profit of Rs 11 per liter on petrol and Rs 6 per liter on diesel in January 2024. Margins of companies have improved on petrol from September 2023 onwards, while on diesel from November 2023 onwards. This means that the government oil companies have been earning good profits on petrol for the last 4 months and on diesel for the last 2 months.
There can be scope in this situation
He said that in the country by May 2022 There has been no change in the prices of petrol and diesel since. In such a situation, if the prices of crude oil remain stable, there may be scope for reduction in the retail prices of petrol and diesel.
Crude below $80 per barrel
Crude oil prices are currently below $80 per barrel. This is due to softening of demand and increase in crude oil production by Libya and Norway. Apart from this, the price of crude oil is also soft due to increasing fear of increasing conflict in Western Asia. The war that has been going on between Israel and Hamas for months is not ending.
Petrol and diesel prices were reduced 21 months ago
Petrol diesel prices are stable from May 2022. . At that time, due to the outbreak of the Russia-Ukraine war, the international price of crude oil had crossed $ 100 per barrel. At that time the Central Government had given relief to the common people by reducing the excise duty. Since then, oil companies kept swinging between losses and profits, but one thing that remained in place was the retail prices of petrol and diesel. Petrol is still above Rs 100 per liter in most parts of the country.
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