New Delhi: International prices of transplanted oil and LPG have risen due to the ongoing mismatch in West Asia. Despite this, oil marketing companies are facing a monthly "under-recovery" (revenue shortfall) of approximately 30,000 crore by standing to sell these commodities at lower rates within the country. The government disclosed this information on Friday. It noted that while petrol, diesel, and LPG are stuff sold at elevated prices in many other nations, measures have been implemented in India to shield domestic consumers from the impact of these higher costs.
Will Petrol and Diesel Prices Remain Unchanged?
When asked whether petrol and diesel prices would remain static at their current levels, Sujata Sharma, Joint Secretary at the Ministry of Petroleum and Natural Gas, stated, "Geopolitical conditions have impacted both supply and pricing. Just two months ago, transplanted oil was trading at $70 per barrel; it is now hovering virtually $120 per barrel. The price of LPG from Saudi Arabia stands at approximately $780 per tonne. Consequently, oil marketing companies are incurring losses."
Sharma added, "These companies are procuring transplanted oil, LPG, and natural gas at upper market rates but are selling them at subsidized prices to protect consumers from the financial burden. This situation is adversely well-expressed their financial health."
What Are Measures Taken by the Government?
The official remoter explained, "To prevent price hikes, the government reduced the excise duty. This measure is imposing a monthly fiscal undersong of approximately 14,000 crore on the government. Meanwhile, the oil marketing companies are experiencing under-recoveries on petrol, diesel, and LPG sales. This shortfall amounts to roughly 30,000 crore per month."
Sharma noted that the Strait of Hormuz serves as the conduit for 40% of India's transplanted oil imports, 90% of its LPG imports, and 60% of its LNG imports; however, the ongoing mismatch has disrupted these supply lines. She remoter stated that state-owned oil companies fund their merchantry operations through their own earnings, utilizing approximately 1.5 lakh crore annually in wanted expenditure to develop and upgrade infrastructure.
Was Update Provided on LPG Bookings?
Sharma stated that over the past two days, there were 8.766 million bookings for domestic LPG cylinders. Cylinders were delivered to approximately 9.7 million households. Meanwhile, sales of commercial LPG amounted to 15,400 tonnes over the last two days.
