New Delhi, First Published Mar 5, 2022, 11:11 AM IST
The study also found that oil companies would not be harmed by any increase in petrol and diesel prices by the 12th due to rising international crude oil prices.
Petrol, diesel and cooking gas prices have not been hiked for the last four months following the election of five state legislatures. But the price of crude oil in the international market has skyrocketed due to the Russian war in Ukraine.
International crude rose to $ 120 a barrel and Texas to $ 111 a barrel in the US. Thus, the gap between production and retail is widening.
In this situation, 5 state elections will end on the 7th. Therefore, petrol and diesel prices can be expected to rise from the 8th. It is unknown at this time what he will do after leaving the post
According to a report by ICICI Securities, “Oil companies have not raised petrol and diesel prices in line with market conditions for the past four months. Petrol and diesel prices have not gone up despite the sharp rise in crude oil prices over the past two months.
The loss to the oil companies is already there. That is, as on March 3, oil companies lost Rs 4.92 per liter on petrol and diesel. It may increase to Rs 10.1 per liter by March 10 and Rs 12 per liter by April 1.
Therefore, the oil companies can only avoid losses if they raise petrol and diesel prices by up to Rs 12 per liter by the 16th. This 12 rupees is only for the oil companies to escape losses, not profits. If it is raised by Rs 12, the cost and revenue of the oil companies will be equal. There will be no loss. But to make a profit, it needs to be raised to Rs 15.10 per liter.
At the time of stopping the rise in petrol and diesel prices in November last year, the price of crude oil in the international market was $ 81.5 per barrel. However, India is currently buying at $ 117.39 a barrel, according to the Central Petroleum Project and Research Group. Therefore, only by raising petrol and diesel prices by up to Rs. 12 per liter can the oil companies escape losses. ”
Last Updated Mar 5, 2022, 11:13 AM IST