Petrol, diesel prices to drop? Oil Marketing companies likely to slash fuel rates, say sources
New Delhi, June 8: Oil marketing companies (OMC) are likely to slash petrol and diesel prices, suggested government sources.
As seen by their strong quarterly results, the companies have nearly recovered their losses and are approaching normalcy. As a result, companies are expected to cut petrol and diesel prices because they no longer suffer under-recoveries in these fuels, according to a government source on Wednesday.
"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," sources said.
According to sources, a cut in oil production by one of the Organisation of Petroleum Exporting Countries (OPEC) members will have no effect on the market due to emerging alternative markets.
According to a Ministry of Petroleum and Gas official, there would be some influence, but not much because there is enough oil supply on the market.
OPEC plus countries made no revisions to their planned oil production cuts for the rest of the year on Sunday.
Saudi Arabia, the world's largest oil exporter, has also agreed to further production cuts beginning in July. However, reports indicate that these actions by oil producers are unlikely to result in a crude oil supply shortage.
"There is no shortage of crude oil supply in the market. Producers' decision to take further production cut expected to have no impact."
"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.