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Wednesday, July 17, 2024

More price reductions will be decided by OMCs depending on profitability: Puri

<p>Petroleum Minister Hardeep Singh Puri said on Friday that the state-run Oil Marketing Companies (OMCs) will make any future decisions on further price reductions for gasoline and diesel based on their evaluation of market circumstances and profitability.</p>
<p><img decoding=”async” class=”alignnone wp-image-517575″ src=”https://www.theindiaprint.com/wp-content/uploads/2024/03/theindiaprint.com-more-price-reductions-will-be-decided-by-omcs-depending-on-profitability-puri-hard-750×422.jpg” alt=”theindiaprint.com more price reductions will be decided by omcs depending on profitability puri hard” width=”988″ height=”557″ title=”More price reductions will be decided by OMCs depending on profitability: Puri 6″ srcset=”https://www.theindiaprint.com/wp-content/uploads/2024/03/theindiaprint.com-more-price-reductions-will-be-decided-by-omcs-depending-on-profitability-puri-hard-750×422.jpg 750w, https://www.theindiaprint.com/wp-content/uploads/2024/03/theindiaprint.com-more-price-reductions-will-be-decided-by-omcs-depending-on-profitability-puri-hard-768×432.jpg 768w, https://www.theindiaprint.com/wp-content/uploads/2024/03/theindiaprint.com-more-price-reductions-will-be-decided-by-omcs-depending-on-profitability-puri-hard-390×220.jpg 390w, https://www.theindiaprint.com/wp-content/uploads/2024/03/theindiaprint.com-more-price-reductions-will-be-decided-by-omcs-depending-on-profitability-puri-hard.jpg 1024w” sizes=”(max-width: 988px) 100vw, 988px” /></p>
<p>Following OMCs, such as the Indian Oil Corporation (IOC), reducing petrol and diesel prices by Rs. 2, which went into effect on March 15, 2024, the minister made this announcement. Puri called the company’s choice, given the unstable state of the world crude oil market, a “courageous move.”</p>
<p>The government lowered the excise tax on these fuels in May 2022 in an effort to help consumers ahead of the general elections. This price reduction is the first of its kind since then.</p>
<p>Speaking outside of the “Ethanol 100” launch from an Indian Oil store here, Puri said, “The OMCs have demonstrated a strong performance over the last three quarters, and we are optimistic about better financial results in the fourth quarter.” He emphasized the industry’s strong financial standing and capacity for “independent pricing decisions.”</p>
<p>In addition, the IOC introduced E100 gasoline stations, which are designed to accommodate cars that operate entirely on ethanol blends in gasoline, marking a big step towards encouraging cleaner fuel sources. IOC Chairman Shrikant Madhav Vaidya gave a speech at this occasion and discussed the potential effects of the price cut, saying, “It is not anticipated to substantially impact profits, but it may have some influence.” He saw that the business had to strike a careful balance between its profitability and customer pricing.</p>
<p>Vaidya went on to discuss the complexity of the world crude oil market and how it affects the company’s fuel pricing strategy. The globe is quite dynamic, and the price of crude oil is important. We’ll wait to make a judgment on future pricing adjustments in reaction to changes in the global market until the crude oil prices demonstrate a pattern, regardless of how turbulent or steady they are, the speaker said.</p>
<p>Customers in Delhi will find some respite as a result of the current price cut, which brings petrol to Rs. 94.72 per litre and diesel to Rs. 87.62 per litre. This decision comes during a time of notable prosperity for the industry, with the first three quarters of the fiscal year seeing a combined profit of Rs. 69,000 crore from IOC, Bharat Petroleum Corporation Ltd (BPCL), and Hindustan Petroleum Corporation Ltd (HPCL). The actions show that India’s energy industry is committed to both environmental sustainability and economic stability.</p>

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