Oil marketing organisations (OMC) are likely to decrease the price of fuel and diesel, according to government sources.
The companies’ encouraging quarterly results show that they have almost made up their losses and are getting close to returning to normal. As a result, it is anticipated that the firms will cut the costs of petrol and diesel now that they are not subject to under-recoveries for these fuels, a government source said on Wednesday, as reported by ANI.
“OMCs have good quarterly results and they are going for another good quarterly results. So, expecting OMC’s to cut down the diesel petrol prices as they have no under-recoveries on diesel and petrol,” the source said.
The sources claim that the emergence of other markets will prevent the market from being affected by a reduction in oil production by one of the Organisation of the Petroleum Exporting Countries’ (OPEC) members.
An official from the Ministry of Petroleum and Gas claims that there won’t be much of an impact because there is enough oil supply on the market.
The OPEC plus countries did not alter their scheduled reduction in oil output for the remainder of the year on Sunday.
The world’s largest oil exporter, Saudi Arabia, has also offered to start implementing additional production cutbacks in July. Sources claim that it is improbable for there to be a shortage of crude oil supply as a result of these oil companies’ decisions.
“There is no shortage of crude oil supply in the market. Producers’ decision to take further production cut expected to have no impact,” he said.
Officials further said, “We have successfully managed the situation of availability of the fuel. Sustainability and the green transition are being done successfully. Today, we held the meeting with OMCs on the green hydrogen mission.”
Officials added that there are no restrictions on blending ethanol up to that proportion and that the government’s objective to attain a 20% ethanol blend is on track.
“There were some challenges in the beginning but we have managed quite well. Now, with new technology, auto companies are coming with advancements in engine technology,” he added.