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Petrol prices not increased since April, despite high global rates: Puri

According to Puri, the three public sector OMCs have incurred a total loss of Rs. 27.276 billion despite no increase in the price of fuel.

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As our nation imports, more than 85% of its crude oil needs, the costs of gasoline and diesel are tied to their prices on the international market, according to the Minister for Petroleum and Natural Gas Hardeep Singh Puri in a written reply to the Lok Sabha on Thursday.
 
West Bengal, Tamil Nadu, Andhra Pradesh, Telengana, Kerala, and Jharkhand have not cut the VAT on petroleum products, which has resulted in higher pricing for petrol and diesel in those states. 
 
According to Puri, the central government has lowered the excise rate on petroleum goods, and some other states have lowered their value-added taxes in response to cues (VAT). (Also Read: Mutual Fund: Want to earn 10 crore in 10 years? Invest in THESE SIP schemes, based on this plan)
 
The minister noted that a number of parameters, such as the price paid for the crude oil, the currency rate, shipping costs, inland freight, refinery margin, dealer commission, central taxes, state VAT, and other cost components, have an impact on fuel retail pricing.
 
He further stated that from November 2020 and November 2022, the average price of the Indian crude oil basket climbed by 102%, going from USD 43.34 to USD 87.55.
 
However, between November 2020 and November 2022, India's retail prices for petrol and diesel only grew by 18.95% and 26.5%, respectively.
 
When comparing the price increases for fuels per litre, Puri listed the rates for other nations in Indian rupees as follows: in October 2022, the price of gasoline in the USA was 83.00 and that of diesel was 113.38; in the UK, the prices were 152.41 and 171.35, respectively.
 
Additionally, public sector Oil Marketing Companies (OMCs) have not raised the prices of gasoline and diesel since 6 April 2022, despite record-high international prices that led to a combined "Profit Before Tax" of Rs 28,360 crore in the first quarter of the financial year 2021–22, while the three OMCs, IOCL, BPCL, and HPCL, have recorded a combined loss of Rs 27,276 crore in the first quarter of the current financial year 2022–23.
 
With rates based on the Saudi Contract Price, India imports more than 60% of its domestic Liquified Petroleum Gas (LPG) consumption (CP). Saudi CP did, however, rise from 236 USD/MT in April 2020 to 952 USD/MT in April 2022.
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