Oil Companies May Suffer Losses On The Government’s Duty Cut

Oil companies may suffer losses on the government’s duty cut: Crude. In the international market, the prices of crude are once again seeing a rise.

Due to this, it is feared that the efforts made by the Central Government recently to control the prices in the domestic market by cutting the duty on petrol and diesel, may not go in vain.

After staying around $110 per barrel for almost 15 days, it crossed $ 119 per barrel on Monday. If it continues at this level, then oil companies may have to increase the retail price of petrol and diesel.

Oil companies say that despite the cut in excise duty, they are incurring losses on petrol and diesel.

Experts say that what will be the prices of crude oil in the coming days, will be decided by what is agreed among European countries to import Russian crude.

A meeting of European countries is going to be held late on Monday, in which a decision is expected to be taken on importing crude from Russia.

According to the information that is coming so far, many countries like Hungary, Czech, Bulgaria, Slovakia, and Romania are not in favor of an immediate ban on buying crude from Russia.

These countries are completely dependent on Russia for the supply of crude oil. At the same time, other European countries also import a lot of crude from Russia.

However, now after the attack on Ukraine, these countries have started buying cruder from Gulf countries and from America.

It is believed that if European countries decide not to buy crude from Russia, then, the price of crude may skyrocket.

The decision of European countries not to buy crude oil from Russia will also have a big impact on India. India is under pressure from America and European countries not to buy crude oil from Russia.

External Affairs Minister S Jaishankar responded to this pressure by saying that as much crude as India buys from Russia in a year, European countries buy in an afternoon.

Oil companies may suffer losses: Government sources say that after February 2022, India is buying cruder than Russia.

Earlier, where India has been taking 1 percent of its total imports from Russia, from February-May 2022, it has bought five percent of the total imports from Russia.

Russia is giving crude to India at cheap rates. Let us inform you that on May 21, 2022, the Central Government cut the excise duty on petrol by Rs 8 and on diesel by Rs 7 per liter.

Due to this, petrol has become cheaper by Rs 9.5 and diesel by Rs 7 per liter. On this, oil companies say that they are facing a loss of Rs 9.5 on petrol and Rs 23 per liter on diesel.