State-owned Indian Oil Corporation (IOC), Bharat Petroleum Corporation Ltd (BPCL), and Hindustan Petroleum Corporation Ltd (HPCL) are considering a reduction in petrol and diesel prices in February, just ahead of the Lok Sabha elections.
Daily price revisions for these fuels have been on hold since last year, and a decision will be made after the release of their Q3 FY24 results later this month, according to a media report.
Despite a decline in global crude oil prices, the three state-run oil companies have collectively reported a net profit of Rs 75,000 crore. The move is seen as a potential measure to alleviate concerns about inflation, a pressing issue for both the government and the Reserve Bank of India.
The companies are expected to make a decision on reducing petrol and diesel rates, possibly by Rs 5 to Rs 10 per litre, after assessing their financial results and considering the potential for future spikes in international oil prices. The decision will be made in consultation with stakeholders.
India, as the world's third-largest oil importer and consumer, relies on imports for over 80 percent of its oil needs. The last nationwide fuel price revision occurred on May 21, 2022, when Finance Minister Nirmala Sitharaman lowered the excise duty on petrol by Rs 8 per litre and on diesel by Rs 6 per litre.
For more than a year, the price of petrol in Delhi has remained at Rs 96.72 per litre, while diesel is being sold at Rs 89.62 per litre. In Mumbai, petrol is priced at Rs 106.31 per litre, and diesel is being sold for Rs 94.27 per litre. In Kolkata, petrol costs Rs 106.31 per litre, with diesel priced at Rs 92.76 per litre. In Chennai, petrol is available at Rs 102.63 per litre, and diesel can be obtained at Rs 94.24 per litre.
(With PTI inputs)
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