Enormous misfortune to oil organizations: Petrol and diesel costs didn't increment for 137 days,thus the deficiency of 19 thousand crores to oil organizations

Big loss to oil companies

India's top fuel retailers IOC,BPCL and HPCL have lost income of about $ 2.25 billion (Rs 19 thousand crore) among November and March. The justification behind this is that even after the expansion in unrefined petroleum costs,there is no adjustment of the costs of petroleum and diesel. This has been said in the report of Moody's Investors Service. In November,the cost of raw petroleum was near $ 80 for every barrel,which has now expanded to more than $ 110. Oil showcasing organizations didn't change the costs of petroleum and diesel between 4 November 2021 and 21 March 2022. Moody's said in its report that because of the expansion in the cost of raw petroleum,the organizations are losing about Rs 1900 for every barrel. In any case,Indian Oil Corporation,Bharat Petroleum Corporation and Hindustan Petroleum Corporation have expanded the costs of petroleum and diesel by 80 paise per liter on March 22 and 23.

The rating organization assesses that IOC has lost around $1-1.1 billion,while BPCL and HPCL have lost around $550-650 million."We anticipate that the public authority should permit purifiers to climb costs to stay away from misfortunes,"the rating organization said. On expanding by 80-80 paise for two continuous days,Moody's said that this shows that the costs of petroleum and diesel will be expanded step by step,not by expanding them immediately. Oil costs were steady throughout the previous 137 days. It is normal to lessen costs before races,to keep costs stable during races and to increment costs after the political decision results are out. This pattern has been happening since most recent 5 years.

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Till June 2010, the public authority used to fix the cost of petroleum and it was changed at regular intervals. After 26 June 2010,the public authority passed on it to the oil organizations to choose the cost of petroleum. Likewise, till October 2014, the cost of diesel was additionally fixed by the public authority, however from 19 October 2014,the public authority gave over this work to the oil organizations.

As of now,oil organizations decide the cost of petroleum and diesel everyday remembering the cost of raw petroleum in the worldwide market,conversion scale,charge,transportation cost of petroleum and diesel and numerous different things. India is 85% ward on imports to meet its oil prerequisites. By and large,the cost of petroleum and diesel in the nation increments by 55-60 paise per liter when unrefined petroleum is costlier by $1 per barrel.