Oil Firms Considering Price Reduction After Q3 Results
Government-owned oil marketing companies (OMCs) are reportedly contemplating a potential petrol and diesel price reduction of Rs 5 to Rs 10 next month following the announcement of Q3 FY24 results. The anticipated move comes as OMCs are expected to surpass a record net profit of over Rs 75,000 crore, attributed to reduced crude oil acquisition costs.
The three major state-owned fuel retailers, namely Indian Oil Corporation Ltd (IOCL), Bharat Petroleum Corporation Ltd (BPCL), and Hindustan Petroleum Corporation Ltd (HPCL), controlling around 90% of the market, have maintained a historic freeze on petrol and diesel prices for an uninterrupted period of 21 months.
As per the Hindustan Times report, citing sources, oil marketing companies (OMCs) reportedly have profit margins of Rs 10 per litre, which could potentially be transferred to consumers.
The oil marketing companies (OMCs) are making good profits due to higher fuel prices. After announcing their Q3 results, they might lower petrol and diesel prices by Rs 5 to Rs 10 per litre, but they'll keep some money aside in case global oil prices go up. The decision will be made after talking to their partners.
In the first half of the current financial year 2023-24, the three oil marketing companies (OMCs) reported a combined net profit of Rs 57,091.87 crore, marking a significant increase of over 4,917% compared to the entire financial year 2022-23, where their combined net profit was Rs 1,137.89 crore.
HPCL is scheduled to disclose its Q3 financial results on January 27, and both BPCL and IOC are anticipated to announce their earnings around the same timeframe.
Currently, petrol prices in Delhi stand at Rs 96.72 per litre, with diesel priced at Rs 89.62 per litre. In Mumbai, petrol is available at Rs 106.31, and diesel is priced at Rs 94.27 per litre. Kolkata reports petrol prices at Rs 106.03 and diesel at Rs 92.76 per litre. Meanwhile, in Chennai, petrol is being sold at Rs 102.63, and diesel is priced at Rs 94.24 per litre.
The Brief. Sign up to receive the top stories you need to know right now.