Amid the war in Iran, petrol and diesel prices in India remained stable for a long time. Due to the sharp rise in crude oil prices across the world, many countries have already passed the burden of higher expenses on to customers. Meanwhile, retail petrol and diesel prices in India have not remained the same for long. Due to this, fuel retailers are facing huge losses, they are losing 20 pounds on petrol and 100 pounds on diesel.
Refineries are running at losses
While the government is protecting customers from fluctuating petrol and diesel prices amid uncertainty around the world, fuel retailers are facing losses. If the crisis in the Middle East continues and international oil prices remain between $70 and $80 per barrel, it may be difficult for oil refineries to absorb such fluctuations. Will petrol and diesel prices increase? Industry insiders expect that if the current volatility in international crude oil prices continues, oil companies may pass on some of the revenue lost on petrol and diesel to customers immediately after the state elections. Before the war in Iran started, the price of international benchmark Brent crude oil was US$72.87 per barrel. On Wednesday it rose nearly 40% to US$101.91 per barrel, and on Thursday it rose to more than US$103 per barrel.
What is the government saying?
Recently, Kotak Institutional Equities said in an industry report that it is becoming difficult for retail companies to maintain the current cap on fuel prices amid rising crude oil prices. As a result, domestic gasoline and diesel prices could rise by as much as £25 to £28 per liter after the end of the state elections, which run until April 29. However, the government has clearly denied this possibility. Petroleum Ministry Deputy Secretary Sujata Sharma said that despite the rise in international prices, the government has no proposal to increase retail prices from ₹25 to ₹28. The government has advised people not to pay attention to rumors circulating on social media, which are being spread with the intention of creating panic.