NEW DELHI: Petroleum minister Hardeep Singh Puri on Friday hinted at a possible reduction in fuel prices in the country if the oil marketing companies (OMCs) turned out to be in profit in the fourth quarter.
The minister, speaking on the sidelines of UN Global Compact Network India’s (UNGCNI’s) 18th National Convention, also mentioned that OMCs have recovered from the past losses and could see profits in the upcoming quarter. “If you ask them (oil companies), they would say their profit has come down... but they have recovered. I am hoping that if the fourth quarter is good, then we can (cut price),” said Puri.
The OMCs like Indian Oil Corporation Limited (IOCL), Bharat Petroleum Corporation Limited (BPCL), and Hindustan Petroleum Corporation Limited (HPCL) have consistently reported profits over the last three quarters. In the third quarter of FY24 alone, these companies collectively reported a profit of Rs 11,773.83 crore. Their combined profits over the past three quarters have surpassed Rs 69,000 crore, exceeding their annual earnings from pre-oil crisis years.
This profitability can be attributed to two factors: a recovery in fuel marketing margins and better refining margins. Additionally, the decision by the oil companies to freeze petrol and diesel price revisions, despite a fall in input crude oil prices, helped them recover losses incurred when prices were high in 2022-23.
This meant they experienced losses when input costs were higher and profits when raw material prices were lower. It’s important to note that petrol and diesel prices at the pump in India have not changed since May 22, 2022.