Govt Wants Petrol & Diesel Prices Slashed; OMCs Cite Covid Losses

State oil-marketing companies (OMCs) have made up for losses and can be expected to lower petrol and diesel pump prices, said a top official from the Ministry of Petroleum and Natural Gas.

- SUBHAYAN CHAKRABORTY

"Not only have OMCs had a good fourth quarter (Q4) in 2022-23 (FY23), they will have another good first quarter (Q1) in 2023-24 (FY24). If this happens, you are well within the bounds of what is legitimate to ask them to reduce prices. I do expect they will pass on some of the benefits," the official informed the media on the sidelines of an industry event in New Delhi on Wednesday.

Data for Q1FY24 will be released in July.

However, this view is expected to be hotly contested by OMCS. Two top executives of OMCs present at the press briefing on Wednesday said the government is taking a dim view of the matter. They argued their companies are yet to make up for losses suffered during the pandemic and the early days of Russia's invasion of Ukraine on February 24, 2022.

Retail fuel prices in India have remained unchanged for a little over a year. On May 22 last year, petrol and diesel prices were set at ₹96.72 and ₹89.62 per litre.