Gasoline and diesel prices may rise soon as the ongoing Assembly elections come to an end with oil companies watching …
Gasoline and diesel prices could rise soon after the end of the ongoing Assembly elections with oil companies looking to raise the retail price of the two car fuels between Rs 2 and Rs 3 per liter in stages and offset the losses suffered by keeping prices artificially low before local elections. Government sources have said that oil companies are suffering losses of Rs 3 and Rs 2 per liter on gasoline and diesel sales, respectively, due to the increase in global crude oil prices which has also impacted international product prices. . Petrol and diesel prices have not increased since February 27, but in fact, car fuel prices have fallen on four occasions in March and April, causing gasoline prices to drop by 77 paisa per liter and diesel by 74 paisa. per liter in the national capital. The decline came even as the average price of Indian crude oil basket stood at around $ 61.22 in February, below the average of $ 64.73 in March, and averaging around $ 66 per barrel in March. April.
Although the retail price of gasoline and diesel is determined on the basis of the 15-day moving average of the product price globally, the downward revision of retail prices has resulted in WTOs making losses on the sale of the two products. and they would no longer wait after the election to revise pump prices upwards. There is, however, a caveat. The review will depend on indications from the government. A source at a public-sector oil company said a stronger rupee would make crude oil cheaper for companies and therefore the actual adjustment of gasoline and diesel retail prices may not be as heavy. But it will all depend on how the rupee settles against the dollar in April. “The oil PSUs have avoided raising oil prices in tandem with global crude oil rates for more than a month and the pattern could continue until the end of the month when the state elections come to an end. So, it wouldn’t be a surprise. if Domestic oil prices see a sharp rise after the election season ends, unless the Center issues new warnings to stagger the hike required to prevent public outrage amid the raging pandemic, “said an expert from the energy sector of a global auditing and consulting firm, which declined to be named.
WTOs have been weak on rising gasoline and diesel prices since early March 2021, when election dates for states were announced. Indeed, this year they decided to cut prices for the first time for two consecutive days – March 24 and 25 – after keeping oil prices stable for the past 24 days. The price was reduced again on March 30th. Subsequently, fuel prices remained unchanged for the past 15 days before dropping again on April 15th. Previously, gasoline and diesel prices have risen 26 times in 2021 with the two car fuels rising by Rs 7.46 and Rs 7.60 per liter, respectively, so far this year. This should be offset through a gradual increase in retail gasoline and diesel prices in a few days before the fuel is brought on par with global market rates. Assembly elections took place in Tamil Nadu, Kerala, Assam and Puducherry, while the final round of polls in West Bengal will take place on April 29. All results will be announced on May 2nd.