The customary depreciation in the Rupee value against the Dollar has made imports expensive, and continues to grow more expensive. This value decrease is directly proportional to price increase of essential products. Oil marketing corporations have requested the Oil ministry to raise the diesel fuel price by at least Rs.4-6 per liter, only to overcome the losses without any profit margin.
The Oil bureau has moved a cabinet note seeking an increase in cooking gas, kerosene and diesel. OMCs (Oil marketing companies) are likely to hike the price of diesel after the monsoon season. Today the Indian Rupee has dug its way to a new low over the U.S Dollar, now one Dollar is approximately Rs.68.40, so that’s a 25% fall since the month of May this year. Adding to this ill effects, the worldwide crude price has witnessed its new height in the last 6 months. India’s main Oil marketers like, Indian Oil, Bharat Petroleum Corp and Hindustan Petroleum are giving out diesel at a loss of Rs.19.26 per liter.
Hence the Oil Companies have requested the Oil bureau to raise the prices of diesel, as now it has become an urgent requirement, because of the loss pile up. Earlier this year in January, the Government of India allowed the Oil firms to raise the prices by 50 Paise every month. But that’s not doing any good to the firms are they are still in heavy loss. The 3 major Oil marketers of India, reported a combined revenue loss of Rs. 47,811 crores in the first quarter of the fiscal year. Wherein Hindustan Petroleum reported a loss of 9,249 crores, Bharat Petroleum with 8,836 crores, and the highest quarterly net loss ever recorded by an Indian company came from Indian Oil, with 22,451 crores. Which led to the grand total of 47,811 crores.