Will petrol and diesel become costlier by ₹ 25 to 28 per litre? Losses of companies are increasing, know the reason

Government sources say that an increase in the prices of petrol and diesel is possible in the coming time. Due to the sharp rise in international crude oil prices and stable retail fuel prices for the last four years, oil companies are under increasing pressure of losses. According to PTI news, recently the price of crude oil in the global market reached $ 126 per barrel, which is the highest level in four years. Although there has been a slight decline, prices still remain above $110 per barrel. The main reason for this is the impact on the movement of ships in the Strait of Hormuz and the increasing tension between America and Iran.

There was no increase in the prices of petrol, diesel and domestic LPG

Meanwhile, Indian Oil Corporation (IOC) has said that despite the increase in energy costs at the international level, there has been no increase in the prices of petrol, diesel and domestic LPG at present. However, government oil companies have increased the prices of commercial LPG, industrial diesel, 5 kg gas cylinders and jet fuel for international flights due to rising costs.

Price may increase by Rs 25 to 28 per liter

Experts believe that after the West Bengal Assembly elections, the prices of petrol and diesel may increase by Rs 25 to 28 per liter. This surge in oil prices was caused by the attack on Iran by the United States and Israel on February 28 and the subsequent Iranian retaliation, which affected the Strait of Hormuz. This waterway is very important for global oil supply and about 20 percent of the world’s total oil trade passes through this route.

Big loss per liter of fuel

According to a senior official of the Oil Ministry, in the current situation, government oil companies are incurring a loss of about Rs 20 per liter on petrol and about Rs 100 per liter on diesel. This loss has increased due to keeping the prices stable for a long time, although at present no immediate decision has been taken to increase the prices. Last year the average price of crude oil was around $ 70 per barrel, which has now increased to more than $ 114 per barrel this month. There has been no major change in the retail prices of petrol and diesel from April 2022. During this period, when global prices fell, oil companies made profits and compensated for the subsequent losses.