With the monthly increase in diesel prices since the last year, oil companies had started reducing their losses per litre of fuel sold. As of today, the loss on diesel fuel has come down to Rs. 2,712 crore, which is less than one-third of the previous quarter’s Rs. 9,037 crore.
Prices of fuel have gone down globally and currently, the fuel is being sold here in India at Rs. 2 more than the actual market price. Where the government is planning to announce a fuel price cut, oil companies are urging the government not to do so, so that they can recover the previous losses.
Another reason to hold on to any price revision on fuel prices are the upcoming state polls. Government is also not willing to deregulate the diesel prices with immediate effect.
With diesel prices going down, cost of other consumables in the market is also expected to go down. Also, will this have any effect on the upward trend in petrol powered vehicles which was noticed over the past couple of months? Time will tell…
Source – ET Auto