NEW DELHI: Fuel retailers in no rush to cross on to customers the good thing about cheaper crude and can wait and watch for 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 prices continue to be volatile.They fell one day last week to below $70 (per barrel) but rose the next day… They (state-run fuel retailers) don’t want a situation where they cut prices one day and have to raise them again,” 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 foremost economies, particularly China, the world’s second-largest oil shopper. On Thursday, nevertheless, Brent rebounded to hover under $75, buoyed by the US curiosity cut.
The officers stated there are loads of selections globally that may have an effect on oil costs. “People are looking at various new data points. For example, how much is the drawdown of crude? What is China’s PMI looking like? What kind of numbers are coming out of China in terms of purchase and storage of crude, refinery margins, refinery bankruptcies, etc.,” the official stated.
Fuel costs had been final cut forward of the Lok Sabha elections on March 14 by Rs 2 per litre. Prior to that, the costs had had remained frozen since May 22, 2022 when the Centre final decreased excise responsibility. This was the second excise responsibility discount in seven months and got here after an identical responsibility discount on November 4, 2021.
The two reductions collectively had introduced down the excise responsibility on petrol and diesel by a complete of Rs 13 and Rs 16 per litre, respectively. After the second responsibility cut, the BJP-ruled states additionally carried out matching cuts in VAT to melt the affect of oil costs surging above $100 per barrel after the Ukraine battle.
“Oil prices continue to be volatile.They fell one day last week to below $70 (per barrel) but rose the next day… They (state-run fuel retailers) don’t want a situation where they cut prices one day and have to raise them again,” 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 foremost economies, particularly China, the world’s second-largest oil shopper. On Thursday, nevertheless, Brent rebounded to hover under $75, buoyed by the US curiosity cut.
The officers stated there are loads of selections globally that may have an effect on oil costs. “People are looking at various new data points. For example, how much is the drawdown of crude? What is China’s PMI looking like? What kind of numbers are coming out of China in terms of purchase and storage of crude, refinery margins, refinery bankruptcies, etc.,” the official stated.
Fuel costs had been final cut forward of the Lok Sabha elections on March 14 by Rs 2 per litre. Prior to that, the costs had had remained frozen since May 22, 2022 when the Centre final decreased excise responsibility. This was the second excise responsibility discount in seven months and got here after an identical responsibility discount on November 4, 2021.
The two reductions collectively had introduced down the excise responsibility on petrol and diesel by a complete of Rs 13 and Rs 16 per litre, respectively. After the second responsibility cut, the BJP-ruled states additionally carried out matching cuts in VAT to melt the affect of oil costs surging above $100 per barrel after the Ukraine battle.
