Oil and diesel prices may soon rise at the end of the upcoming Assembly elections, with oil companies looking to …
Oil and diesel prices may rise soon at the end of the ongoing elections for Assembly with oil companies that want to raise the retail price of the two car fuels by between 2 and 3 ro per liter in phases and offset the losses they have suffered by keeping prices at artificially low levels before the local elections. Government sources said oil companies are losing in the price of 3 and 2 ro per liter due to sales of gasoline and diesel, respectively, due to rise in global crude oil prices which also affected the international product prices. Oil and diesel prices have not risen since February 27, but in fact car fuel prices fell four times in March and April, bringing petrol prices down by 77 paisa per liter and diesel by 74 paisa per liter. national capital. The fall came though as the average Indian basket crude price stood at around $ 61.22 in February, at a lower than average $ 64.73 in March and averaging close to $ 66 a barrel in April so far.
Although the selling price of gasoline and diesel is set based on a 15-day rolling average of product price globally, a downward revision of sales prices resulted in WTOs losing sales of the two products and would not wait any longer after the elections to revise the pump prices up. It is a warning, however. The revision would depend on indications coming from the government. A source at a public sector oil company said a stronger rupee will make crude cheaper for companies and therefore an effective adjustment of retail prices for petrol and diesel may not be heavier. But it would all depend on how the rupee balances against the dollar in April. “Oil PSUs have avoided marching on oil prices along with global crude oil tariffs for more than a month now and the pattern could continue until the end of the month when the state elections end. So it wouldn’t be surprising if domestic oil prices witness sharp growth after the election season is coming to an end unless the Center gives new advice to shake up the necessary march to avoid public outrage amid the raging pandemic, ”said an energy sector expert from a global audit and consulting firm. , who did not want to be nominated.
The WTO has been mild on rising gasoline and diesel prices since the beginning of March 2021 when election dates for the states were announced. In fact, they set a price target for the first time this year for two consecutive days – March 24 and 25 – after keeping oil prices steady for the past 24 days. It reduced the price again on March 30. Subsequently, fuel prices remained unchanged for the past 15 days before falling again on 15 April. Earlier, petrol and diesel prices increased 26 times in 2021 with the two car fuels increased by Rs 7.46 to Rs 7.60 per liter, respectively, so far this year. This would need to be offset by a gradual increase in petrol and diesel retail prices for a few days before the fuel will be equated with the global market rates. Assembly elections were held in Tamil Nadu, Kerala, Assam and Pondicherry, while the final phase of voting in West Bengal will take place on 29 April. All results will be declared on May 2nd.