Petrol, diesel may get cheaper as OMCs become profitable: Report

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Lok Sabha elections, according to a report by ET Now. In contrast to peak losses of ₹17 per litre on petrol and ₹35 per litre on diesel in 2022, OMCs are now making a profit of ₹8-10 per litre on petrol and ₹3-4 per litre on diesel. According to the report, the oil ministry has already discussed crude versus retail price scenarios with OMCs.

Since oil marketing companies (OMCs) are now making profits, the government has begun discussions on the matter to give some relief to the people, the report further added. The finance ministry and the oil ministry are pondering over the current crude oil price scenario. In addition to OMC profitability, they are discussing global factors, the report noted.

Due to strong profits in the last three quarters, OMCs' overall losses have narrowed. The combined profit of three OMCs - IOC, HPCL and BPCL - was ₹28,000 crore last quarter, the report further stated. Since OMCs' under-recovery has ended, the government thinks that the consumers must also reap the benefits.

Earlier this week, oil prices fell on the back of concerns about a drop in demand and continued uncertainty over the depth and duration of OPEC+ supply cuts. According to a Reuters survey, OPEC oil output fell in November in the first monthly drop since July, as a result of lower shipments by Nigeria and Iraq as well as ongoing market-supported cuts by Saudi Arabia and other members of the wider OPEC+ alliance. Earlier Mint reported quoting analysts that the falling oil prices could help India ease inflation.