The oil ministry will search compensation from the finance ministry for the losses state-owned gasoline retailers incurred on holding petrol and diesel costs within the final eight months regardless of a spike in value of uncooked materials, a high official stated at this time.
Indian Oil Company (IOC), Bharat Petroleum Company Ltd (BPCL) and Hindustan Petroleum Company Ltd (HPCL) posted a mixed web lack of Rs 21,201.18 crore in April-September.
This loss would have been larger however for them accounting for Rs 22,000 crore yet-to-received LPG subsidy for previous years.
“The primary half losses are publicly obtainable. Add to that the LPG subsidy and you’d arrive at approximate loss they’ve incurred,” the official stated.
Since holding of the costs benefited the economic system when it comes to not add to the already excessive inflation price, there’s a case for the oil advertising and marketing corporations (OMCs) to be compensated, he stated.
“Petrol and diesel costs are deregulated (not managed or dictated by the federal government). OMCs are free to repair the charges every day on the premise of benchmark worldwide oil costs. However they on their very own volition determined to maintain the costs on maintain,” he stated.
The oil ministry will calculate the probably losses for the whole fiscal yr earlier than approaching the finance ministry for the compensation.
The three gasoline retailers are nonetheless dropping cash on sale of auto gasoline regardless of softening worldwide charges.
They haven’t modified costs since April 6 regardless of worldwide oil costs capturing as much as greater than a decade excessive.
The federal government in October doled out Rs 22,000 crore to the three corporations as a one-time grant to make up for the losses they incurred on promoting home cooking fuel (LPG) in two years beginning June 2020.
The oil ministry had sought Rs 28,000 crore for the LPG losses however bought Rs 22,000 crore.
The softening of worldwide oil costs had raised the expectation of a reduce in petrol and diesel costs.
The basket of crude oil that India imports had shot as much as USD 116 per barrel in June however has moderated to USD 83.23 this month.
If the worth discount occurs, this would be the first reduce since Could 22 when the federal government reduce excise obligation on the 2 fuels to defend clients from excessive world costs and rein in inflation.
Petrol and diesel costs are presupposed to be revised every day however state-owned gasoline retailers haven’t exercised their rights since April 6. Charges have been on freeze since then besides on Could 22 when costs had been decreased following a reduce in excise obligation.
Previous to the April freeze, petrol and diesel costs had gone up by Rs 10 per litre every.
Petrol at present prices Rs 96.72 a litre within the nationwide capital and diesel is priced at Rs 89.62.
(Apart from the headline, this story has not been edited by NDTV workers and is revealed from a syndicated feed.)
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