Oil marketing firms may cut petrol, diesel prices amid record profits

In in move to bring relief to consumers pockets, a report from Hindustan Times indicates that Oil Marketing Companies (OMCs) are contemplating a reduction in petrol and diesel prices by ₹5 to ₹10 per litre from the next month.

The report further adds that the potential move is anticipated after the release of the third-quarter results by state-run oil companies. The anticipated reduction in fuel prices comes on the heels of expected record profits for state-run oil companies, projected to surpass ₹75,000 crore in the third quarter.

Public sector fuel retailers have maintained stable prices since April 2022, and officials indicate an impending comprehensive pricing review. There's potential for passing on margins of ₹10 per litre to consumers, a move that could alleviate inflation concerns and hold significance ahead of the 2024 General Elections.

As the government holds the role of promoter and majority stakeholder in all three oil marketing companies (OMCs), their combined net profit for the first half of 2023-24 surged by over 4,917% to ₹57,091.87 crore, a stark contrast to the ₹1,137.89 crore combined net profit for the entire financial year 2022-23.

Oil firms' Q3 results

Hindustan Petroleum Corporation Ltd (HPCL) is set to unveil its Q3 results on January 27, with Indian Oil Corporation (IOC) and Bharat Petroleum Corporation Ltd (BPCL) expected to make similar announcements around the same time.