Petrol and diesel price are likely to go down after oil marketers posted robust quarterly results, wiping out most of the losses they bore during the COVID-19 pandemic.
What Happened? Oil marketing companies (OMCs) are expected to reduce petrol and diesel prices as they have recovered their losses and are nearing normalcy, based on positive quarterly results, government sources told ANI. They added that the ongoing oil production cuts by OPEC members are unlikely to significantly impact the market due to emerging alternative markets and sufficient oil supply.
State-run oil refiners, including the Indian Oil Corporation, Bharat Petroleum and Hindustan Petroleum, posted significant profits in the March quarter.
An official from the Ministry of Petroleum and Gas stated that the recent decision by OPEC plus countries, including Saudi Arabia, to implement further crude oil supply cuts starting in July is not expected to cause a shortage of crude oil supply.
They mentioned that the plan to reach the 20% ethanol blending target is on track, and there are no limitations in blending ethanol up to that percentage.
In addition, officials told the agency that the government held a meeting with OMCs to discuss the green hydrogen mission, highlighting the government’s commitment to the green transition and successful sustainability initiatives in the fuel sector. They mentioned the challenges faced initially in ethanol blending but noted that advancements in engine technology by auto companies have helped overcome these obstacles.
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