Oil Marketing Companies Generating Profit Of Rs. 15/ltr On Petrol, Rs. 12/ltr On Diesel

GUWAHATI: Amidst falling crude prices, oil marketing companies (OMC's) are generating huge profits by selling petrol and diesel.

According to a recent report by ICRA, OMC's like Indian Oil, Hindustan Petroleum and Bharat Petroleum are booking a profit of Rs. 15/litre on petrol and Rs. 12/litre on diesel.

"ICRA estimates that the OMC's net realization was higher by Rs. 15/litre for petrol and Rs. 12/litre for diesel vis-a-vis international product prices in September 2024 (till September 17). The retail selling price (RSPs) of these fuels have been unchanged since March 2024 (Rs. 2/litre was reduced on petrol and diesel on March 15, 2024)," says Girishkumar Kadam, Senior Vice President and Group Head - Corporate Ratings, ICRA.

Due to significant reductions in crude prices in recent months, the marketing margins of OMCs have risen significantly.

Experts suggest with such hefty marketing margins, OMCs can easily afford to pass these profits to the consumers by slashing the prices of petrol and diesel.

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