Petrol, diesel likely to get cheaper: Reports
Oil marketing companies (OMC) could reduce the price of petrol and diesel soon, ANI reported, quoting government sources. The quarterly results for OMCs turned out positive, indicating that the companies have recovered their losses and are approaching normalcy. The upcoming financial quarter is also expected to be positive as OMCs have no under-recoveries on petrol and diesel.
Why does this story matter?
Petrol and diesel prices have remained static for 14 consecutive months despite a decline in international oil prices. The OMCs, owned by the government, froze retail prices to insulate domestic consumers from the disruption expected due to the Russia-Ukraine crisis. Due to selling fuel below the cost, India's top-three oil marketing companies posted a combined loss of Rs. 21,201.18 crore during April-September 2022.
Saudi Arabia announced to cut production by 1 million bpd
Crude oil prices surged on Monday after Saudi Arabia, the largest supplier among the members of the Organization of the Petroleum Exporting Countries (OPEC), announced to voluntarily cut down production by 1 million barrels per day (bpd) for July. The move is said to be aimed at propping up oil prices amid global economic uncertainty and concerns about a probable drop in international demand.
Petroleum ministry officials met OMCs to discuss green hydrogen project
The Ministry of Petroleum and Natural Gas officials said the production cut by one OPEC member won't significantly affect the market as alternative markets are emerging with sufficient oil supply. The officials said they met the OMCs on Thursday to discuss the green hydrogen mission for sustainability. They said the government's plan to achieve 20% ethanol blending in petrol is on track.
