Oil Ministry To Seek Compensation For Petrol, Diesel Losses To State-Run Retailers

New Delhi:

The oil ministry will search compensation from the finance ministry for the losses state-owned gas retailers incurred on holding petrol and diesel costs within the final eight months regardless of a spike in price of uncooked materials, a prime official mentioned right now.

Indian Oil Company (IOC), Bharat Petroleum Company Ltd (BPCL) and Hindustan Petroleum Company Ltd (HPCL) posted a mixed internet lack of Rs 21,201.18 crore in April-September.

This loss would have been larger however for them accounting for Rs 22,000 crore yet-to-received LPG subsidy for previous years.

“The primary half losses are publicly out there. Add to that the LPG subsidy and you’ll arrive at approximate loss they’ve incurred,” the official mentioned.

Since holding of the costs benefited the economic system by way of not add to the already excessive inflation price, there’s a case for the oil advertising and marketing corporations (OMCs) to be compensated, he mentioned.

“Petrol and diesel costs are deregulated (not managed or dictated by the federal government). OMCs are free to repair the charges every day on the premise of benchmark worldwide oil costs. However they on their very own volition determined to maintain the costs on maintain,” he mentioned.

The oil ministry will calculate the doubtless losses for your complete fiscal yr earlier than approaching the finance ministry for the compensation.

The three gas retailers are nonetheless dropping cash on sale of auto gas regardless of softening worldwide charges.

They haven’t modified costs since April 6 regardless of worldwide oil costs capturing as much as greater than a decade excessive.

The federal government in October doled out Rs 22,000 crore to the three companies as a one-time grant to make up for the losses they incurred on promoting home cooking gasoline (LPG) in two years beginning June 2020.

The oil ministry had sought Rs 28,000 crore for the LPG losses however obtained Rs 22,000 crore.

The softening of worldwide oil costs had raised the expectation of a lower in petrol and diesel costs.

The basket of crude oil that India imports had shot as much as USD 116 per barrel in June however has moderated to USD 83.23 this month.

If the worth discount occurs, this would be the first lower since Might 22 when the federal government lower excise obligation on the 2 fuels to protect clients from excessive international costs and rein in inflation.

Petrol and diesel costs are speculated to be revised every day however state-owned gas retailers haven’t exercised their rights since April 6. Charges have been on freeze since then besides on Might 22 when costs had been lowered following a lower in excise obligation.

Previous to the April freeze, petrol and diesel costs had gone up by Rs 10 per litre every.

Petrol presently prices Rs 96.72 a litre within the nationwide capital and diesel is priced at Rs 89.62.

(Aside from the headline, this story has not been edited by NDTV workers and is revealed from a syndicated feed.)