The Indian basket of crude oil was at $ 64.3 bbl in January, which fell to $ 19.9 bbl in April, and rose again to $ 42.42 bbl through September 9, 2020.
Diesel prices in India have been gradually falling after topping the price of gasoline earlier this year. Diesel prices fell by 8 paise on Tuesday, which is the fifth consecutive day of the downward revision. Diesel is now selling at Rs 70.63 per liter, and the price of gasoline is unchanged at Rs 81.06 per liter. [IN CITY], according to Indian Oil Corporation Limited (IOCL). In Mumbai, the tariffs for gasoline and diesel were Rs 87.74 per liter and Rs 77.04 per liter, respectively. Retail fuel prices are determined by the market, and the PSU oil trading companies (OMC) make appropriate decisions on the price of gasoline and diesel in accordance with international product prices and other market conditions.
Retail prices do not correspond to world prices
While the price of the Indian crude oil basket fell significantly during the lockdown, retail fuel prices did not match world prices. The Indian crude oil basket was at $ 64.3 bbl in the month of January, which fell to $ 19.9 bbl in April, and rose again to $ 42.42 bbl through September 9, 2020, Dharmendra said. Pradhan, Minister of Oil and Natural Gas, in an answer to a question in Lok Sabha.
OMC’s earnings in the first quarter were more than last year’s annual earnings
However, it is interesting to note that while India was reeling under severe stress in the first quarter of the current fiscal year and the demand for gasoline and diesel fell dramatically due to lockdown restrictions, OMC profits remained at high levels. After-tax profit for Indian Oil Corporation Limited (IOCL) and Hindustan Petroleum Corporation Limited (HPCL) in the first quarter of fiscal 21 was higher than their profit in the previous full year, based on data provided in Lok Sabha.
IOCL posted a profit of Rs 1,911 crore in Q1 FY21, compared to Rs 1,313 crore in FY20; and HPCL posted a profit of Rs 2,814 crore in Q1 FY21, compared to Rs 2,637 crore in FY20. Bharat Petroleum Corporation Limited’s (BPCL) PAT also stood at higher levels. Meanwhile, fuel prices in India are heavily taxed. Gasoline attracts excise duty of Rs 32.98 per liter, while diesel attracts Rs 31.83 per liter. In addition, the customs duty is 2.5 percent on gasoline and diesel and a 3 percent social welfare surcharge is added.
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