A potential reduction in petrol and diesel prices is expected soon, driven by improved profit margins reported by oil marketing companies (OMCs). Industry sources indicate that favorable international market conditions and reduced losses in domestic LPG sales have created an environment conducive to a fuel price cut.
According to Repots , OMCs are currently earning a profit of approximately ₹10 to ₹11 per litre on petrol and ₹7 to ₹8 per litre on diesel. Simultaneously, losses incurred on domestic LPG sales have decreased significantly—from around ₹260 per cylinder two months ago to approximately ₹150 now. This positive shift is contributing to overall profitability for the companies.
The consistent profits from petrol and diesel sales are now offsetting earlier losses, positioning OMCs in a financially stable situation. Although previous losses are yet to be fully recovered, the current trend suggests that the time may be right for a revision in retail fuel prices.
The central government is reportedly evaluating the possibility of compensating OMCs for past losses. Additionally, excise duty has already been increased by ₹2 per litre, contributing to government revenues while allowing room for strategic price adjustments.
Sources within the Petroleum Ministry indicate that current global crude oil prices are expected to remain within a stable range. No immediate global factors are visible that could lead to a sharp increase in prices, making the case for a domestic price cut stronger.
While petrol and diesel pricing has been deregulated, government oversight continues to play a role in significant pricing decisions. A reduction in fuel prices would provide much-needed relief to consumers and could have a positive impact on the broader economy by lowering transportation costs and easing inflation.
Disclaimer:
The information presented in this article is based on industry sources and media reports. Official confirmation from government authorities or oil marketing companies is awaited. Readers are advised to verify details from official announcements before making any financial or related decisions.
