Oil marketing companies IOC, BPCl and HPCL have incurred a loss of about Rs 19,000 crore between November and March. The reason for this is that these companies did not increase the prices of petrol and diesel during this period. On the other hand, there was a sharp jump in crude prices during this period. Moody’s Investors Service gave this information on Thursday.
Companies did not increase prices from November 4 to March 21
Oil companies did not make any changes in petrol and diesel prices from November 4 last year to March 21 this year. In November, the price of crude was around $ 82 a barrel. In the first three weeks of March, the average price of crude was around $ 111 a barrel. Oil companies import crude for retail sale of petrol and diesel.
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Prices hiked after more than 4 months
IOC, BPCL and HPCL raised petrol and diesel prices by 80 paise per liter on March 22 and March 23. But, they did not hike the prices on Thursday. Experts say that to recover from the losses, these companies have no other way but to increase the prices of petrol and diesel.
Loss of about Rs 19,000 crore in revenue
Moody’s has said in its report, “Oil marketing companies are incurring a loss of about Rs 1900 per barrel at the current market price.” If the average price of crude remains at $ 111 per barrel, then the three companies will lose around $ 65 to 70 million daily. It has said that according to our estimates, in the first three weeks of November and March, on average sales volume, these companies have lost about Rs 19,000 crore in revenue.
$1.1 billion loss to IOC alone
The rating agency said that the IOC alone has suffered a loss of about $ 1 to 1.1 billion. BPCL and HPCL have lost around Rs 55-60 crore each. Oil prices in India are fixed by the oil marketing companies every fifteen days.
Prices expected to rise gradually
Moody’s has said that the loss in revenue will increase short-term borrowing of companies. In the coming time, if crude prices fall, then oil companies can compensate for their losses to some extent. Regarding the increase in the prices of petrol and diesel on March 22 and March 23, the rating agency has said that this indicates that the prices of petrol and diesel will increase gradually.
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