A govt official said that although ATF prices for domestic market had been expected to rise 100 per cent in April, increase was moderated to 25 per cent to cushion burden on domestic passengers.
IOC, BPCL, and HPCL have lost about Rs 20,000 crore due to the fuel price freeze. These losses will accumulate on balance sheets, raise borrowing costs, and circle back to the govt as contingent liabilities.
Oil prices are nearly 40% lower than they were in June 2022, when fuel prices were effectively frozen; yet, consumers have not benefited from this decrease.
Move to bring down differences in commodity prices with neighbouring states, says government. Oppn, dealers blame it on welfare, Congress's guarantees.
Petrol & diesel prices have barely changed since June 2022, even though oil prices have fallen 28% since then. This has boosted profitability of OMCs and dividend payouts to govt.
Petrol and diesel rates have not been lowered in India since May 2022 even though international oil prices are down 25% from June 2022 peak. Analysts believe ‘politics is at play’.
Fuel prices were first kept static to protect consumers from rise in oil prices, and then for OMCs to recover losses. With OMCs in profit now, daily pricing mechanism can be restored.
Industry says manufacturers have 2-4 weeks of buffer stocks, but prolonged disruption could push up shortage risks, especially of consumables like IV and syringes.
French newspaper La Tribune earlier last week indicated that UAE withdrew from deal to fund EUR 3.5 billion. India is looking to order 114 new Rafales, which could include the F5.
China patiently invested capital, skill and technology in coal gasification. Unlike it, we won’t move from words to action. As crude prices decline, we lose interest.
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