Crude oil hits six-month low, but losses continue on diesel sales

Crude oil prices in the international market have reached a six-month low. Officials said that due to this, Indian retailers are not making losses on the sale of petrol. But the loss on the sale of diesel continues. Diesel is the most widely used fuel in the country.

Prices fall on concerns of global recession

Brent crude, the global oil standard, was at a price of $ 94.91 per barrel on Thursday. Due to concerns of a global recession, crude oil has come down to a six-month low of $ 91.51 on the previous day. The current price of crude oil is a matter of relief for India, as the country is dependent on imports to meet 85 percent of its oil requirements.

Officials with knowledge of the matter have said that due to the fall in prices, retail fuel sellers like Indian Oil Corporation are no longer suffering any loss on petrol. But, some losses on diesel still continue. State-owned oil companies IOC, BPCL and HPCL have not increased the retail selling price of petrol and diesel according to the international price. These companies have done this to support the government's efforts to control inflation.

No loss on sale on petrol

Due to the increase in international oil prices, these companies were at one time incurring a loss of Rs 20 to 25 per liter on diesel and Rs 14 to 18 per liter on petrol. An official said that there is no loss on petrol as of now. Diesel will take some time to reach this position. Another official said that there is no possibility of immediate reduction in retail prices of oil as oil companies will make up for the losses incurred during the past months. He said that the loss on diesel has now come down to Rs 4 to 5 per liter.

The fall in crude oil prices is very positive news for India. In fact, India imports most of its requirement. The jump in the import bill due to high prices is a loss for India in every way. This increases the trade deficit.