Fuel price cut: OMCs mulling slashing diesel, petrol prices
₹10 per litre next month. This development came as their profits are expected to hit a record ₹75,000 crore in the third quarter, despite falling crude oil costs, according to a report by Hindustan Times.
This would bring some relief at the pump and help control inflation, especially ahead of the 2024 elections, the report further added. Public sector fuel retailers maintained stable prices since April 2022, signaling an imminent pricing review.
Officials suggest that the oil marketing companies (OMCs) might have a profit margin of ₹10 per liter that could potentially be passed on to consumers. Also Read | Petrol, diesel may get cheaper as OMCs become profitable: Report Sources indicated that the three OMCs, that come under the administration of the government and holding a dominant market share, reported substantial net profits in the first half of the fiscal year 2023-24, witnessing a remarkable 4,917% increase compared to the entire financial year of 2022-23.
“Due to higher marketing margin on the sale of fuels, the three OMCs (oil marketing companies) posted significant net profit in Q1 and Q2 [of FY2023-24] and the trend will continue in Q3. After results by the end of this month, they may consider reducing petrol and diesel rates between ₹5 and ₹10 a litre, keeping some cushion for the future spike in international oil prices.
A decision will be taken by the companies in consultations with their stakeholders," a source said, as quoted by Hindustan Times. Also Read | OMCs score record highs on lower crude prices; Indian Oil, HPCL hit 52-week high, BPCL among top Nifty 50 gainers Meanwhile, Hindustan Petroleum Corporation Ltd (HPCL) in November last year reported a consolidated net profit of ₹5,826.96 crore for the
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