Petrol-diesel can be expensive: HPCL has lost 10,197 crores in the April-June quarter, the oil company can increase the price to make up for it

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Petrol and diesel prices may increase in the coming days. The reason for this is the loss to the state oil companies of the country. Hindustan Petroleum Corporation Limited (HPCL) has incurred a loss of 10,196.94 crore in the first quarter (April-June) of the financial year 2022-2023. This is the highest loss to the company in any quarter. The company is making a profit of Rs 1,795 crore in the same quarter of the previous financial year.

IOCL loses Rs 1,992.53 crore
Indian Oil Corporation Limited (IOCL) reported a net loss of Rs 1,992.53 crore in April-June as against Rs 5,941.37 crore in the same period a year ago and Rs 6,021.9 crore in the January-March quarter. In such a situation, companies can increase the prices of petrol and diesel in the coming days.

companies selling oil at loss
Crude oil imports in India averaged US$ 109 per barrel in the April-June quarter, but petrol and diesel prices at retail pumps were around $85-86 per barrel. This caused losses to the companies. IOCL sold petrol and diesel at a loss of Rs 10 and Rs 14 per liter during the April-June quarter.

Crude close to $100 a barrel
Crude oil prices remain volatile due to Russia-Ukraine war. Crude oil has been trading near $100 per barrel for a long time. Due to this Indian companies are also having to import expensive crude oil. However, India has also bought discounted crude oil from Russia. The information about how much was bought and at what rate has not been revealed yet.
The government has said that oil companies are free to revise retail prices. However, the three state-owned oil companies have not given details about the reasons for freezing the rates.

Petrol-diesel prices have not increased since April 6
Petrol and diesel prices were last increased on 6 April. That is, the prices of petrol and diesel have not increased since 4 months. At the same time, in May, the government had cut excise duty on petrol by Rs 8 and diesel by Rs 6 to give relief to the common people. Due to this, the price of petrol became cheaper by Rs 9.5 and diesel by Rs 7.

How are the prices of petrol and diesel determined?
Till June 2010, the government used to fix the price of petrol and it was changed every 15 days. After 26 June 2010, the government left it to the oil companies to decide the price of petrol. Similarly, till October 2014, the price of diesel was also fixed by the government, but from October 19, 2014, the government handed over this work to the oil companies.

At present, oil companies determine the price of petrol and diesel daily keeping in mind the price of crude oil in the international market, exchange rate, tax, transportation cost of petrol and diesel and many other things.

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