InvestorQ : Are petrol and diesel prices being raised and how will it impact downstream oil companies like BPCL and IOCL?
Archita Jajjoo made post

Are petrol and diesel prices being raised and how will it impact downstream oil companies like BPCL and IOCL?

Answer
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Rashi Mehra answered.
5 months ago


The government is likely to raise the price of petrol and diesel by Rs.4-5 per litre due to the sharp spike in the crude prices by nearly 100% in the last one month. This will allow these downstream companies to bridge their losses that have been mounting now. This could be initiated if lockdown is taken into fifth phase till June 15 (as is likely) prevent OMCs from running into big losses by selling fuel below cost. Crude has hardened in the last few weeks and if it continues further then OMCs may not be in a position to absorb losses further. Already, the gap between cost and sale price of petrol and diesel for OMCs has reached around Rs.4-5 per litre. That would only put more strain on the OMCs. Ideally, that would work once the demand for fuel picks post the lockdown.