price of gasoline and diesel
Due to the fall in crude oil prices, government-owned oil companies have benefited a lot. These companies dominate 90% of the market. The government has directed three major state-owned companies Indian Oil Corporation (IOC), Bharat Petroleum Corporation Limited (BPCL) and Hindustan Petroleum Corporation Limited (HPCL) to reduce the prices of petrol and diesel by Rs 2 per litre on March 14, just before the assembly elections. Now it is said that a fall in prices may once again be seen before the assembly elections. Let us understand how this will be possible.
This standard has been in force since 2010.
Petrol prices were deregulated in 2010 by linking them to world market prices, and diesel prices were deregulated in 2014. Indians still pay more than Rs 100 per litre for petrol in many states, while diesel prices remain above Rs 90 per litre. The widespread use of this fuel, from transport to cooking, has a major impact on inflationary pressures, while many industries, from tyres to aviation, also depend on it.
This is India’s plan
According to Reuters, the secretary said India also wants OPEC to increase oil production because there are countries like India where fuel demand is increasing. Last week, OPEC+, made up of the Organization of the Petroleum Exporting Countries and its allies led by Russia, agreed to postpone oil production increases planned for October and November after crude prices fell. India, the world’s third-largest importer and consumer of oil, relies on foreign sources for more than 87% of its oil needs. The secretary said Indian companies are keen to maximize crude oil purchases from the most cost-effective suppliers, including Russia.
