NEW DELHI: A day after announcing a reduction in petrol and diesel by Rs 2, the Indian Oil Corporation (IOC) said these cuts are not going to significantly affect the company’s bottom line.
Indian Oil Corporation (IOC) Chairman Shrikant Madhav Vaidya, on the sidelines of launching E100 (100% Ethanol blending in petrol) petrol pumps in the country, also said it was too early to gauge the precise effects on the upcoming quarter’s financials.
“The price reduction may have some influence, but it is not anticipated to substantially impact profits,” said Vaidya. When asked if more cuts are possible in the future, the chairman also highlighted the volatile nature of crude oil prices in determining future courses of action regarding fuel pricing. “It’s a very dynamic world; crude oil prices play a critical role. We will wait for the crude oil prices, how they are, once it shows some trend whether it’s stable or volatile, then we will take a call,” he added.
After almost two years of freezing oil prices, the oil marketing companies (OMCs) cut the price of petrol and diesel in the country by Rs 2 each on Thursday. The rates will be effective from March 15, 2023. OMCs cut price just ahead of the general election. Last time the companies’ revised prices was in May 2022.