petrol and diesel prices may increase in india in the coming days. This is due to the losses incurred by the country's state-owned oil companies. Public sector petroleum major hindustan petroleum corporation limited (HPCL) has suffered record losses. The company reported a loss of Rs 10,196.94 crore in the first quarter of the current financial year. This is HPCL's biggest loss compared to any previous quarter. 1,795 crore net profit in the same period last year. Why do petroleum companies continue to incur losses? What is the reason for that? What about other petroleum companies like Hindustan Petroleum Corporation Limited? Will petrol and diesel prices rise in the coming days?
The company said that this loss has occurred due to not increasing the price of petrol and diesel. That is, in the first quarter of the current financial year, petroleum companies did not increase the prices of petrol and diesel. Due to this, they have lost revenue in proportion to operating expenses.
Like hpcl, other PSUs like oil CORPORATION' target='_blank' title='indian oil corporation-Latest Updates, Photos, Videos are a click away, CLICK NOW'>indian oil corporation (IOCL) and bpcl did not hike petrol and diesel prices last quarter. Keeping in mind the government's efforts to control rising inflation, the sale continued without any change in prices. oil CORPORATION' target='_blank' title='indian oil corporation-Latest Updates, Photos, Videos are a click away, CLICK NOW'>indian oil corporation Ltd (IOCL) reported a net loss of Rs 1,992.53 crore in the April-June quarter, as against Rs 5,941.37 crore in the same period a year ago and Rs 6,021.9 crore in the January-March quarter.
Two of the country's largest state-owned enterprises have to take drastic measures to recover from losses of several hundred crores. It is speculated that the companies may raise the prices of petrol and diesel in the coming days to cover this loss. HPCL's product sales revenue increased to Rs 1.21 lakh crore in the last quarter from Rs 77,308.53 crore in the same quarter last year. The main reason behind the revenue growth is the rise in crude oil prices in the international market.Oil companies that sold petrol and diesel at a loss:
India's crude oil imports averaged US$ 109 per barrel during the April-June quarter, but petrol and diesel prices at retail pumps were $85-86 per barrel. This has affected companies. IOCL sold petrol and diesel at a loss of Rs 10 and Rs 14 per liter in the April-June quarter. Crude oil has been trading around $100 per barrel for a long time. Due to this indian companies have to import expensive crude oil. However, india also buys crude oil from russia at discounted rates. The price of the purchase is yet to be disclosed.
Petrol and diesel prices hiked on april 6:
Petrol and diesel prices were fixed and sold daily by oil companies, but the prices of petrol and diesel were increased on april 6. That means petrol and diesel prices have not been increased for 4 months. At the same time, in May, the government reduced the excise duty on petrol by Rs 8 and diesel by Rs 6 to provide relief to the common man.