Oil marketing companies have not increased the prices of petrol and diesel since last November. Due to this, oil companies are incurring losses from the sale of fuel. The margin of companies on fuel has gone down to minus. He is incurring a loss of Rs 1.54 per liter of sale. ICICI Securities has given this information in its report.
ICICI Securities has said that to protect oil companies from losses, the price of petrol and diesel will have to be increased by up to Rs 12 per liter by March 16. Crude prices had touched $120 a liter on Thursday. For the first time in the last 9 years, the price of crude reached this level.
There was a slight softening in crude on Friday. Its price came down to $ 111 per liter. Despite this, the gap between cost and retail price persists. The ICICI report said that there is a need for an immediate hike in fuel prices. If the price of fuel is increased by Rs 12.1 per liter by March 16, then the loss to the oil companies will stop. For a margin of Rs 2.5 per litre, the prices will have to increase by Rs 15 per litre.
JP Morgan has also expressed expectation of daily hike in petrol and diesel prices. It has said that after the completion of the election process in Uttar Pradesh next week, the prices of diesel and petrol will see a daily increase. Oil companies have not increased the prices of petrol and diesel since November. It is believed that the companies did not increase the prices due to the assembly elections in five states.
The price of petrol in Delhi is Rs 95.41 per litre. The price of diesel there is Rs 86.67 per liter. In some states, the price of petrol is more than Rs 100 per liter. However, to give relief to the people from expensive fuel, the government had cut the excise duty by about Rs 10 per liter.
It is believed that the effect of increase in the price of petrol and diesel will also affect the prices of other things. The reason for this is that a lot of diesel is used for transportation.
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