In any case, there are indications that the central government is ready to reduce the prices of petrol and diesel significantly ahead of the crucial Lok Sabha elections. Hindustan Times reported that the price of motor fuels may be reduced by Rs 10 per liter by the month of February. It is reported that the fuel prices will be lowered after the public sector oil companies announce their performance results for the third quarter of the current financial year.
Profit will cross Rs 75,000 crore
The general assessment is that the third quarter financial results of the three public sector oil companies, which account for 90 percent of the domestic petrol supply, will exceed Rs 75,000 crore. Public sector oil companies such as Indian Oil Corporation (IOC), Bharat Petroleum Corporation (BPCL) and Hindustan Petroleum Corporation (HPCL) have seen a sharp rise in profits due to lower crude prices and market prices remaining unchanged at relatively high prices for 21 months.
Oil companies made huge profits in the first quarter (April-June 2023) and second quarter (July-September 2023) of the current financial year. As crude prices remain below the $80 level in the international market, public sector petroleum companies are expected to make huge profits in the third financial quarter as well.
Inflation will be considered
The central government is also actively considering reducing the price of petrol and diesel by Rs 5 to Rs 10 per liter as a way to tame inflation in the public sector as public sector oil companies are making huge profits. If the central government also takes a favorable stance in reducing fuel prices, consumers will benefit significantly. In any case, it is reported that the final decision on reducing the fuel price will be taken after the announcement of the third quarter results of the oil companies.