Bulk diesel prices which have been falling for a few weeks now have been further reduced in the last fortnightly review by almost ₹4 per litre.
As of August 16, the price is ₹116.06 per liter in Hyderabad compared to ₹120.05 at which it was made available to bulk consumers since August 1.
While the latest revision narrowed the gap between bulk and pump prices, the difference of ₹18.24 is enough incentive for the old user segment to stock up at retail outlets (petrol sleepers) of national oil marketing companies. Buying fuel from outlets to save costs has become routine for most large consumers, including state-owned transport companies, since prices started to climb.
The current bulk diesel price is over ₹27 lower from ₹143.22 per liter in the first half of July. Petroleum marketing companies had reduced the price by more than ₹13 per liter on July 16 and followed up by reducing another ₹10 earlier in the month. A sharp increase in diesel prices earlier this year caused bus commuters to leave, in addition to having a spiraling effect on the prices of various daily-use products.
Diesel at outlets in Hyderabad is dispensed at ₹97.82 per litre, a price that has remained unchanged for over three months. The recent drop in the price for large consumers can only raise expectations among retail consumers for a downward revision of diesel prices at the pump.
Although downward revisions to bulk diesel prices are tied to international commodities as well as crude oil prices, oil companies would prefer not to change pump prices for gasoline and diesel, as they would remain unchanged even when raw material costs soared earlier this year. year. Fitch Ratings had recently said that marketing losses due to the freeze in gasoline, diesel and liquefied petroleum gas (LPG) prices during recent periods of high crude oil prices could put pressure on profitability and , therefore, on the credit metrics of oil marketing companies.
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