‘Petrol and diesel can be cheaper by Rs 10’, ‘Common man will get relief before general elections, petrol and diesel prices will come down’, ‘Government oil companies are working on reducing petrol prices. Recently, such headlines were circulating in the media. Chairman and Managing Director of state-owned oil marketing company Bharat Petroleum Corporation Limited (BPCL) G. Krishnakumar said that media reports about the reduction in retail prices of fuel products are speculations.
On the expectation of retail fuel price cuts by OMCs due to the upcoming Lok Sabha elections, he said in an interview, “The news of a cut in the retail prices of our fuel products is imaginary. The global situation is volatile. So, the sensitivity of the matter, if and when the prices will change. It is difficult to comment at this stage.”
Krishnakumar said the company reported an 82% increase in consolidated net profit in the December quarter. Let us tell you that Bharat Petroleum Corporation Limited (BPCL) had a consolidated net profit of Rs 8244 crore in the September 2023 quarter.
On the Red Sea crisis, he said, “Houthi terrorists have been attacking commercial vessels through the Bab-al-Mandab Strait since November 19, 2023. These attacks have undermined the global supply chain. More than 7 million barrels from the Bab-al-Mandab chokepoint per day (mbpd) of crude oil, condensate and refined oil products pass through. Several major shipping companies, including giants BP and Equinor, have decided to withdraw from this primary east-west trade route. Shipping in the Red Sea is targeted by Houthi militants. The attack on the ships has not affected the flow of crude oil to India, but has increased freight rates through the Cape of Good Hope by changing the route.”
Why speculations started on petrol and diesel price cut: In fact, sources indicated that the three oil marketing companies (OMCs) made huge profits in the first half of the financial year 2023-24. There is an increase of 4917 percent compared to FY 2022-23. This trend can be seen in the third quarter as well. Due to which companies can consider reducing the price of petrol and diesel by Rs 5 to 10 per litre.
. Source
