After remaining above $100 a barrel for two consecutive weeks, crude oil prices in global markets softened to $99.84 a barrel on Tuesday.Â
This has eased the margin pressure on retail oil companies. The companies have not increased the prices of petrol and diesel despite the increase in the cost of raw materials.
After remaining above $ 100 a barrel for two consecutive weeks, crude oil prices in the global markets softened to $ 99.84 a barrel on Tuesday. This has eased the margin pressure on retail oil companies. The companies have not increased the prices of petrol and diesel despite the increase in the cost of raw materials. Brent crude fell seven percent on Tuesday.
Crude went up to $ 139 per barrel
Earlier, on February 28, it had gone up to $ 100 a barrel and on March 7 reached a 14-year high of $ 139 a barrel. The market has been affected by the increasing cases of corona virus in China. China is the world’s largest importer of crude oil, so demand may be adversely affected. Apart from this, there are also signs of progress in talks on a ceasefire between Ukraine and Russia.
The country’s import bill will be lower
The reduction in crude oil prices is good news for India as it will reduce the import bill of the world’s third largest oil importer. According to industry sources, this will also ease the pressure on the public sector retail oil companies.
State-owned Indian Oil Corporation (IOC), Bharat Petroleum Corporation Limited (BPCL) and Hindustan Petroleum Corporation Limited (HPCL) did not change the prices of petrol and diesel for a record 131 days.
Rates did not increase despite 60 percent jump
Prices have remained the same despite a more than 60 per cent jump in raw material cost. There were apprehensions that companies may increase fuel prices after the assembly elections in five states, including UP, are completed last week.
But he kept the price intact and did not give the opposition parties a chance to corner the government in the second phase of Parliament’s budget session starting Monday.
A senior official said, “The reduction in crude oil prices is definitely a good sign for the petroleum companies… they were incurring a loss of Rs 12-13 per liter on the sale of petrol and diesel considering the marketing margin.
Since November 4, when the price of crude oil in the international market was $ 81 per barrel, the companies have not increased the prices.
