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Crude oil prices in the international market have reached a seven-month low, but the retail prices of petrol and diesel in the country are not coming down. It is being told that the state-owned oil companies, despite the increase in oil prices in the international market, held on to the retail price of fuel for the last five months and now they are compensating for their losses during this period.
Brent crude is trading at $ 92.84 per barrel
Brent crude had slipped below $90 a barrel last week for the first time since February, impacting demand amid fears of a recession. However, it is now trading at $ 92.84 per barrel, which is the lowest level in six months. Oil prices remain flat despite factors such as the closure of Russia’s Northern Pipeline and a reduction in oil production by OPEC, an alliance of oil-producing countries. Despite the reduction in oil prices in the international market, there has been no change in the retail prices of petrol, diesel in India. The prices have been kept stable at one point for the last 158 days.
In a question asked about this, Oil Minister Hardeep Singh Puri on Friday linked the matter to the loss suffered by state-owned oil companies by providing petrol, diesel to the public at stable prices despite the high oil prices in the international market. “When oil prices were high in the international market, we were providing fuel at cheaper rates,” he said. He, however, did not elaborate on the total loss suffered by the oil companies by keeping rates stable from April 6.
He said there is some respite as international oil prices remain stable at or below $88 a barrel. India imports 85 percent of its oil requirements. Therefore the retail pump rates are directly dependent on the happenings in the global markets.
Prices started falling in July
As of September 8, India is currently importing oil at an average rate of $88 per barrel. The average was $102.97 in April and $116.01 in June. In July, prices fell to $105.49 a barrel. The average was $97.40 in August and $92.87 in September.
Oil companies are helping the government in controlling inflation
A government official said, for five months, state-owned oil companies Indian Oil Corporation (IOC), Bharat Petroleum Corporation Limited (BPCL) and Hindustan Petroleum Corporation Limited (HPCL) have decided to reduce the international price of petrol to control the rapidly rising inflation. has not exercised its right to adjust the retail sale price with Some time ago, due to increase in prices in the international market, it was facing a loss of Rs 20-25 per liter on diesel and Rs 14-18 per liter on petrol. The fall in prices has offset the losses. Now oil companies are being allowed to compensate for the losses incurred in that time frame.
Prices are stable since April 7
Earlier, state-owned oil companies had fixed the retail price of fuel for a record 137 days from November 4, 2021, but this was the election period in Uttar Pradesh. This period of rate stabilization was ended in March this year, 15 days after the price hiked by Rs 10. After this, the prices were again stabilized from 7 April. At present, the price of petrol in Delhi is Rs 96.72 per liter and diesel Rs 89.62 per litre. This is down from Rs 105.41 per liter of petrol and Rs 96.67 per liter of diesel on April 6 as the government cut excise duty.