NEW DELHI: Gas retailers in no rush to move on to shoppers the advantage of cheaper crude and can wait and look ahead to the market volatility to ebb earlier than taking a name, a senior petroleum ministry official stated on Thursday, at the same time as brokerages estimated the businesses are raking in Rs 8-9 as advertising and marketing margin on petrol and diesel.
“Oil costs proceed to be risky.They fell in the future final week to under $70 (per barrel) however rose the following day… They (state-run gasoline retailers) don’t need a scenario the place they minimize costs in the future and have to lift them once more,” the official stated.
As reported by TOI on September 4, the retailers may cut back petrol and diesel costs earlier than the Maharashtra meeting elections if oil stays under $80 per barrel. Benchmark Brent crude slumped to $70/barrel final week, the primary time in two years, as concern of oversupply grew amid poor present by the main economies, particularly China, the world’s second-largest oil shopper. On Thursday, nevertheless, Brent rebounded to hover under $75, buoyed by the US curiosity minimize.
The officers stated there are loads of choices globally that may have an effect on oil costs. “Individuals are taking a look at varied new information factors. For instance, how a lot is the drawdown of crude? What’s China’s PMI trying like? What sort of numbers are popping out of China when it comes to buy and storage of crude, refinery margins, refinery bankruptcies, and many others.,” the official stated.
Gas costs had been final minimize forward of the Lok Sabha elections on March 14 by Rs 2 per litre. Previous to that, the costs had had remained frozen since Might 22, 2022 when the Centre final diminished excise obligation. This was the second excise obligation discount in seven months and got here after an identical obligation discount on November 4, 2021.
The 2 reductions collectively had introduced down the excise obligation on petrol and diesel by a complete of Rs 13 and Rs 16 per litre, respectively. After the second obligation minimize, the BJP-ruled states additionally applied matching cuts in VAT to melt the impression of oil costs surging above $100 per barrel after the Ukraine battle.
“Oil costs proceed to be risky.They fell in the future final week to under $70 (per barrel) however rose the following day… They (state-run gasoline retailers) don’t need a scenario the place they minimize costs in the future and have to lift them once more,” the official stated.
As reported by TOI on September 4, the retailers may cut back petrol and diesel costs earlier than the Maharashtra meeting elections if oil stays under $80 per barrel. Benchmark Brent crude slumped to $70/barrel final week, the primary time in two years, as concern of oversupply grew amid poor present by the main economies, particularly China, the world’s second-largest oil shopper. On Thursday, nevertheless, Brent rebounded to hover under $75, buoyed by the US curiosity minimize.
The officers stated there are loads of choices globally that may have an effect on oil costs. “Individuals are taking a look at varied new information factors. For instance, how a lot is the drawdown of crude? What’s China’s PMI trying like? What sort of numbers are popping out of China when it comes to buy and storage of crude, refinery margins, refinery bankruptcies, and many others.,” the official stated.
Gas costs had been final minimize forward of the Lok Sabha elections on March 14 by Rs 2 per litre. Previous to that, the costs had had remained frozen since Might 22, 2022 when the Centre final diminished excise obligation. This was the second excise obligation discount in seven months and got here after an identical obligation discount on November 4, 2021.
The 2 reductions collectively had introduced down the excise obligation on petrol and diesel by a complete of Rs 13 and Rs 16 per litre, respectively. After the second obligation minimize, the BJP-ruled states additionally applied matching cuts in VAT to melt the impression of oil costs surging above $100 per barrel after the Ukraine battle.
