NEW DELHI: Gas retailers in no rush to cross on to customers the good thing about cheaper crude and can wait and look ahead to the market volatility to ebb earlier than taking a name, a senior petroleum ministry official mentioned on Thursday, at the same time as brokerages estimated the businesses are raking in Rs 8-9 as advertising margin on petrol and diesel.
“Oil costs proceed to be risky.They fell in the future final week to under $70 (per barrel) however rose the following day… They (state-run gas retailers) don’t desire a state of affairs the place they lower costs in the future and have to lift them once more,” the official mentioned.
As reported by TOI on September 4, the retailers may scale back petrol and diesel costs earlier than the Maharashtra meeting elections if oil stays under $80 per barrel. Benchmark Brent crude slumped to $70/barrel final week, the primary time in two years, as worry of oversupply grew amid poor present by the key economies, particularly China, the world’s second-largest oil shopper. On Thursday, nonetheless, Brent rebounded to hover under $75, buoyed by the US curiosity lower.
The officers mentioned there are quite a lot of selections globally that may have an effect on oil costs. “Individuals are taking a look at numerous new information factors. For instance, how a lot is the drawdown of crude? What’s China’s PMI wanting like? What sort of numbers are popping out of China by way of buy and storage of crude, refinery margins, refinery bankruptcies, and so on.,” the official mentioned.
Gas costs have been final lower forward of the Lok Sabha elections on March 14 by Rs 2 per litre. Previous to that, the costs had had remained frozen since Might 22, 2022 when the Centre final decreased excise responsibility. This was the second excise responsibility discount in seven months and got here after an analogous responsibility discount on November 4, 2021.
The 2 reductions collectively had introduced down the excise responsibility on petrol and diesel by a complete of Rs 13 and Rs 16 per litre, respectively. After the second responsibility lower, the BJP-ruled states additionally applied matching cuts in VAT to melt the impression of oil costs surging above $100 per barrel after the Ukraine battle.
“Oil costs proceed to be risky.They fell in the future final week to under $70 (per barrel) however rose the following day… They (state-run gas retailers) don’t desire a state of affairs the place they lower costs in the future and have to lift them once more,” the official mentioned.
As reported by TOI on September 4, the retailers may scale back petrol and diesel costs earlier than the Maharashtra meeting elections if oil stays under $80 per barrel. Benchmark Brent crude slumped to $70/barrel final week, the primary time in two years, as worry of oversupply grew amid poor present by the key economies, particularly China, the world’s second-largest oil shopper. On Thursday, nonetheless, Brent rebounded to hover under $75, buoyed by the US curiosity lower.
The officers mentioned there are quite a lot of selections globally that may have an effect on oil costs. “Individuals are taking a look at numerous new information factors. For instance, how a lot is the drawdown of crude? What’s China’s PMI wanting like? What sort of numbers are popping out of China by way of buy and storage of crude, refinery margins, refinery bankruptcies, and so on.,” the official mentioned.
Gas costs have been final lower forward of the Lok Sabha elections on March 14 by Rs 2 per litre. Previous to that, the costs had had remained frozen since Might 22, 2022 when the Centre final decreased excise responsibility. This was the second excise responsibility discount in seven months and got here after an analogous responsibility discount on November 4, 2021.
The 2 reductions collectively had introduced down the excise responsibility on petrol and diesel by a complete of Rs 13 and Rs 16 per litre, respectively. After the second responsibility lower, the BJP-ruled states additionally applied matching cuts in VAT to melt the impression of oil costs surging above $100 per barrel after the Ukraine battle.
