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NEW DELHI: State-owned Indian Oil Company (IOC), Hindustan Petroleum Company Ltd (HPCL) and Bharat Petroleum Company Ltd (BPCL) posted a mixed lack of Rs 18,480 crore on holding petrol and diesel costs regardless of an increase in value.
In keeping with inventory trade filings by the three gas retailers, the losses have been resulting from erosion within the advertising margin on petrol, diesel and home LPG.
This wiped away features from the file refining margin. IOC, HPCL and BPCL, that are imagined to revise petrol and diesel costs every day in keeping with value, haven’t modified charges for 4 months now regardless of worldwide oil costs capturing up.
They’ve additionally not modified cooking gasoline LPG charges in tandem with value. IOC on July 29 reported a web lack of Rs 1,995.3 crore for the April-June quarter. On Saturday, HPCL reported its highest ever quarterly lack of Rs 10,196.94 crore and BPCL posted a lack of Rs 6,290.8 crore.
The mixed loss at Rs 18,480.27 crore is the best ever for any quarter together with the period when petrol and diesel costs have been regulated and the federal government used to provide subsidies to the three retailers.
Throughout April-June, IOC, BPCL and HPCL didn’t revise petrol and diesel costs in keeping with rising prices to assist the federal government comprise inflation which had topped 7 per cent.
The basket of crude oil India imports through the quarter averaged USD 109 per barrel however the retail pump charges have been aligned to about USD 85-86 a barrel value.
Whereas the federal government has maintained that oil corporations are free to revise retail costs, the three state-owned companies have not defined the explanations for freezing the charges since April 6.
Sometimes, oil corporations calculate a refinery gate worth based mostly on import parity charges. But when the advertising division sells it at costs lower than import parity, losses are booked.
State gas retailers are imagined to align charges with a global value on daily basis. However they’ve periodically frozen costs earlier than essential elections.
IOC, BPCL and HPCL stopped revising charges forward of meeting elections in states like Uttar Pradesh final yr. That 137-day freeze led to late March with costs being raised by Rs 10 per litre every earlier than one other spherical of freeze got here in drive in early April.
That is regardless of worldwide oil costs hovering to multi-year excessive on provide issues following Russia’s invasion of Ukraine.
The federal government in Could minimize excise obligation on petrol and diesel which was handed on to shoppers as an alternative of getting used to sq. off mounting losses on the 2 gas gross sales.
The present freeze on petrol and diesel costs, excluding the discount resulting from a minimize in excise obligation, is now 123 days outdated.
Final month, ICICI Securities in a report said that IOC, BPCL and HPCL bought petrol and diesel at a lack of Rs 12-14 per litre, fully offsetting the robust refining efficiency through the quarter.
In keeping with inventory trade filings by the three gas retailers, the losses have been resulting from erosion within the advertising margin on petrol, diesel and home LPG.
This wiped away features from the file refining margin. IOC, HPCL and BPCL, that are imagined to revise petrol and diesel costs every day in keeping with value, haven’t modified charges for 4 months now regardless of worldwide oil costs capturing up.
They’ve additionally not modified cooking gasoline LPG charges in tandem with value. IOC on July 29 reported a web lack of Rs 1,995.3 crore for the April-June quarter. On Saturday, HPCL reported its highest ever quarterly lack of Rs 10,196.94 crore and BPCL posted a lack of Rs 6,290.8 crore.
The mixed loss at Rs 18,480.27 crore is the best ever for any quarter together with the period when petrol and diesel costs have been regulated and the federal government used to provide subsidies to the three retailers.
Throughout April-June, IOC, BPCL and HPCL didn’t revise petrol and diesel costs in keeping with rising prices to assist the federal government comprise inflation which had topped 7 per cent.
The basket of crude oil India imports through the quarter averaged USD 109 per barrel however the retail pump charges have been aligned to about USD 85-86 a barrel value.
Whereas the federal government has maintained that oil corporations are free to revise retail costs, the three state-owned companies have not defined the explanations for freezing the charges since April 6.
Sometimes, oil corporations calculate a refinery gate worth based mostly on import parity charges. But when the advertising division sells it at costs lower than import parity, losses are booked.
State gas retailers are imagined to align charges with a global value on daily basis. However they’ve periodically frozen costs earlier than essential elections.
IOC, BPCL and HPCL stopped revising charges forward of meeting elections in states like Uttar Pradesh final yr. That 137-day freeze led to late March with costs being raised by Rs 10 per litre every earlier than one other spherical of freeze got here in drive in early April.
That is regardless of worldwide oil costs hovering to multi-year excessive on provide issues following Russia’s invasion of Ukraine.
The federal government in Could minimize excise obligation on petrol and diesel which was handed on to shoppers as an alternative of getting used to sq. off mounting losses on the 2 gas gross sales.
The present freeze on petrol and diesel costs, excluding the discount resulting from a minimize in excise obligation, is now 123 days outdated.
Final month, ICICI Securities in a report said that IOC, BPCL and HPCL bought petrol and diesel at a lack of Rs 12-14 per litre, fully offsetting the robust refining efficiency through the quarter.
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