The average international diesel price – used as the benchmark for domestic pump prices – has fallen sharply by 41% from a peak of $170.92 in June 2022 to $100.88 per barrel this month, bringing relief to state-run oil refiners, even as international crude prices have plunged to a 14-month low spooked by a brewing US banking crisis and fears of global recession.
The three public sector oil refiners, Indian Oil, Bharat Petroleum and Hindustan Petroleum, which control over 90% of the domestic fuel retail business, no longer incur any losses on sale of petrol and diesel, three people aware of the matter said, requesting anonymity. On Monday, benchmark Brent crude prices fell below $72 a barrel in intraday trades.
The three firms, however, are not in a position to restore their daily pricing mechanism at this juncture owing to high price volatility in international energy markets and political compulsions from the forthcoming assembly elections in Karnataka, the people added.
