‘Petrol, diesel prices may come down soon if…’
Public sector oil marketing companies may lower petrol and diesel prices if they see another quarter of strong financial performance, says an official. The OMCs have largely recovered from high under-recoveries caused by high crude oil prices and stagnant fuel prices.
PremiumNew Delhi: Public sector oil marketing companies (OMC) can be expected to lower retail prices of petrol and diesel in case they witness another quarter of robust financial performance, an official said.
The official further said that OMCs have largely recovered from the high under-recoveries witnessed over the past one year due to high crude oil prices and stagnant retail fuel prices.
"Given how all three OMCs have had good results in the last quarter (Q4 FY23), after one more quarter of such results, they can be expected to reduce prices," the official said.
Petrol prices have largely remained stable since May last year when prices had decline post the Centre announced a cut in excise duty.
The official further said that after private OMCs stopped selling petrol and diesel in the country last year with international crude prices surging, now these private players have started selling by lowering the price by Re 1 compared to the state-run OMCs.
The official further told reporters that gas prices may drop in the next few months, due to rising supplies in the market .
The official also noted that there is no lack of oil supply in the market.
The statement gains significance as Saudi Arabia recently announced additional output cuts. The move is expected to lift oil prices.
The price of Brent on the Intercontinental Exchange rose 1.06% to $77.10 per.
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