Petrol Diesel Rate: If oil companies want to meet their losses, then they will have to increase the prices of petrol and diesel by up to Rs 12 in the next 11 days. Due to the assembly elections in five states including Uttar Pradesh, the prices of vehicle fuel have not increased for the last four months. Crude oil prices in the international market on Thursday rose above $120 a barrel for the first time in nine years. Oil prices declined on Friday and came down to USD 111. However, there is still a huge gap between the cost of crude oil and the retail rates, which is being borne by the oil companies.
According to the latest report by ICICI Securities, retailers need to increase the price of petrol and diesel by more than Rs 12 per liter by March 16 to recover the cost. If the margins of oil companies are also included in this, then a price increase of Rs 15.1 per liter will have to be done.
According to the Petroleum Planning and Analysis Cell (PPAC) under the Ministry of Petroleum, the price of crude oil that India buys on March 3 stood at $117.39 a barrel. This fuel price is the highest since 2012. In early November last year, when petrol and diesel prices were halted, the average crude oil price stood at $81.5 per barrel.
According to the report, “The net marketing margin of vehicle fuel stood at minus Rs 4.92 per liter on March 3. So far in the fourth quarter of the current financial year, it is Rs 1.61 a liter. However, at the current international price of the fuel, the net margin may come down to minus Rs 10.1 per liter on March 16 and below zero to Rs 12.6 per liter on April 1.
Posted By: Arvind Dubey