The country’s top three petroleum companies have suffered a loss of $ 2.25 billion (about Rs 19 thousand crore) from November to March 2022 due to the increase in the price of fuel despite the increase in crude oil prices. Moody’s Investors Service said in a report on Thursday that Indian Oil Corporation (IOC), Bharat Petroleum Corporation (BPCL) and Hindustan Petroleum Corporation (HPCL) have suffered due to non-increasing fuel prices.
There was no change in fuel prices in the country between November 4, 2021 and March 21, 2022, despite a jump in crude oil prices. During this period, crude oil prices averaged $ 111 a barrel in the first three weeks of March from $ 82 a barrel in November. However, petroleum marketing companies have increased the prices of petrol and diesel by 80-80 paise per liter on March 22 and 23. Fuel prices have not increased on Thursday.
Moody’s said in its report that based on current market prices, petroleum marketing companies are currently incurring losses of around $25 (over Rs 1,900) a barrel on petrol and $24 a barrel on diesel. IOC, BPCL and HPCL could collectively lose between $65-70 million a day on petrol and diesel sales if crude oil prices average around USD 111 a barrel, the report said.
Moody’s said that based on our estimates of average sales volume during the first three weeks of November to March, the loss of revenue on petrol and diesel to public sector petroleum refining and marketing companies is about $ 2.25 billion.