Regarding the price of petrol and diesel, it is said that its prices depend on the market. However, experimentally, the opposite is being seen.
Regarding the price of petrol and diesel, it is said that its prices are dependent on the market, that is, if the prices of crude oil fall, then it will also be cheaper. However, experimentally, the opposite is being seen. In the last nine weeks, government oil market companies (OMCs) did not pass on the benefit of falling crude oil prices to customers. Instead these companies made maximum profits on the sale of auto fuel.
Analysts believe that if oil companies maintain this margin till the end of January 2022 next month, then despite elections in important states like UP-Punjab in February-March next year, the margins of oil companies may remain above normal. However, it may be affected by the rise in oil prices. Indian Oil charges Rs 48.23 on petrol and Rs 49.61 on diesel per liter from dealers.
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Petrol pumps do not benefit from cheap crude oil
Oil companies have not made any cut in the duty charged from retailers (petrol pumps) from November 4. According to analysts, due to this, the marketing margin of OMCs on petrol and diesel rose by about 30 per cent in November to around Rs 9 per liter compared to October. Talking about the price of crude oil in the Indian basket, on November 2, it was at a price of $ 83.7 (Rs 6238.79) per barrel, which fell to $ 74.6 (Rs 5560.50) by December 28. According to analysts at Emkay Global, if OMCs maintain this margin till the end of January and oil prices do not rise, their quarterly margins could be above normal despite elections in key states like UP-Punjab.
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Common people got some relief on November 3
On November 3, the central government gave partial relief to the end-consumers of petrol and diesel. The central government had announced a reduction of Rs 5 in excise duty per liter of petrol and Rs 10 on diesel. After this, the central tax on petrol per liter was reduced to Rs 27.9 and on diesel to Rs 21.8. Due to this, the price of petrol per liter in the capital Delhi slipped from a record high of Rs 110.04 to Rs 103.97 and diesel from Rs 103.97 to Rs 86.67. After this, the Delhi government also cut VAT, which reduced the price of petrol to Rs 95.41 on December 1. However, VAT on diesel was not deducted in Delhi. Last year in March and May 2020, surcharge and cess on petrol per liter were increased by Rs 13 and on diesel by Rs 16.
(Article: Anupam Chatterjee)
(US = 1 = Rs.74.54)
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