Despite surge in crude oil, there is no possibility of increase in prices of petrol and diesel: Moody’s – Dainik Savera Times
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New Delhi: Despite the rise in crude oil prices, petrol and diesel prices are unlikely to increase due to the general elections next year. This was said in a report by Moody’s Investors Service. Three public sector fuel retailers Indian Oil Corporation (IOC), Bharat Petroleum Corporation Limited (BPCL) and Hindustan Petroleum Corporation Limited (HPCL) have kept petrol and diesel prices stable for 18 consecutive months.
These companies control about 90 percent of the market. This was done despite the increase in crude oil prices last year, due to which these companies suffered huge losses in the first half of the financial year 2022-23. Due to strengthening of international oil prices since August, the profits (margins) of all three retailers have again gone into the negative category.
According to the Moody’s report, “High crude oil prices will weaken the profitability of IOC, BPCL and HPCL, the three state-owned oil marketing companies in India.” Due to the general elections, there will be limited opportunities to increase the retail selling prices of petrol and diesel in the current financial year. However, due to weak global growth, high oil prices are not likely to persist for long.
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