Petrol and diesel prices have been stable for a whole month. There has been no change in prices after the central government cut excise duty on petrol and diesel on May 21. Despite this, there are apprehensions about the availability of petrol and diesel in many states of the country.
To control the situation, the scope of Universal Service Obligation (USO) of the government has been increased, but that too is not working. The shortage of petrol and diesel is increasing in many states of the country. Petroleum sector experts believe that private sector companies are deliberately not selling because, due to reduction in excise duty, they are incurring losses of about ten rupees per liter on petrol and more than twenty rupees per liter on diesel.
Private sector companies are selling less oil to cover their losses. The closure of outlets of private companies has increased the pressure on the public sector oil companies. Changes in the policy of oil companies to give oil to petrol pump owners have also affected. BPCL has stopped lending to dealers. Hemant Sirohi, member of Empowering Petroleum Dealers Association, says that companies have reduced the supply of oil.
At the same time, instead of borrowing, now oil companies are asking for advance to take new stock. Sirohi BPCL petrol pump dealer. According to the data of Hindustan Petroleum Corporation Limited (HPCL), HPCL’s petrol sales have increased by 36.3 percent in these two months as compared to April-May 2021. At the same time, the sale of petrol of private companies has decreased by 1.6 percent during this period. At the same time, the sale of diesel has increased by 26.9 percent while the sale of diesel of private companies has decreased by 28.9 percent. According to the Petroleum Ministry, in the first fortnight of June 2022, the demand has increased by 50 percent as compared to the same period last year. PLC/GT