Be ready to face up to Rs 4-5 per litre increase in the pump price of petrol and diesel next month with public sector oil marketing companies bracing up to restart daily price revision of the two petroleum products after the lockdown is lifted in June.
Official sources in public sector oil marketing companies said that all fuel retailers had a meeting last week to evaluate the situation and prepare the roadmap for restarting daily fuel revision exercise post Covid-19 related lockdown.
The exercise, could be started even if lockdown is taken into fifth phase from June once the government gives its nod for marginal revision in petrol and diesel prices daily to prevent OMCs from running into big losses by selling auto fuels below cost. There is expectation that an extension of lockdown will now come with more relaxations that could allow market determined pricing for petrol and diesel.
“The oil market has turned the tables this month gaining over 50 per cent from last month’s prices, hovering over $30 a barrel now and rising. If the rising trend continued, oil companies, which absorbed big increase in excise duty on petrol and diesel early this month, would start making losses on sale of petrol and diesel. The sales volume of auto fuel is already down due to a demand squeeze cause by Covid-19 pandemic and lockdown,” said an official of OMC.
BhaskarLive brings to you latest news from India and the world, breaking round the clock.
No comments:
Post a Comment