What is the reason for petrol price hike after 137 days?

What is the reason for petrol price hike after 137 days?

Registration:
March
22, 2022,
09:59
PM

This collection analyzes the background of the increase of 76 paise per liter in petrol and diesel prices after 137 days …

This package analyzes the background to the fact that petrol and diesel prices have been hiked by 76 paise per liter after 137 days. From November 4, 2021, petrol prices remained unchanged at 101 rupees 40 paise per liter and diesel at 91 rupees 43 paise per liter. But the price of crude oil rose from $ 80.54 a barrel on November 4 to $ 94.05 on February 23. Crude oil prices as a result of the Ukraine war that began on February 24. Further up, it is currently at $ 119.13. However, petrol and diesel prices did not rise in line with rising crude oil prices. As a result, petrol and diesel companies are losing 20 to 25 rupees per liter. Economists say the current 76 paise hike will not even cover 10 percent of these losses. IOC, HPCL and BPCL, the central government’s public sector companies, account for 92 per cent and private companies, including Reliance, Essar and Shell, account for just 8 per cent of petrol and diesel production and sales. Therefore, there is an environment in which private companies have to determine their selling prices in line with the selling prices of public sector companies. Similarly in 2008, Reliance closed its 1,432 petrol shares as it could not cope with the loss as the PSUs sold far below the production price. Essar shares were then closed. As crude oil prices continue to rise, private petrol stocks are likely to close again if petrol and diesel prices do not rise accordingly.