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After remaining above $100 a barrel for two consecutive weeks, crude oil prices in global markets softened to $99.84 a barrel on Tuesday. This has eased the margin pressure on retail oil companies. The companies have not increased the prices of petrol and diesel despite the increase in the cost of raw materials. Brent crude fell seven percent on Tuesday. Earlier, on February 28, it had gone up to $ 100 per barrel and on March 7 reached a 14-year high of $ 139 per barrel.
The market has been affected by the increasing cases of corona virus in China. China is the world’s largest importer of crude oil, so demand may be adversely affected. Apart from this, there are also signs of progress in talks on a ceasefire between Ukraine and Russia. The reduction in crude oil prices is good news for India as it will reduce the import bill of the world’s third largest oil importer. According to industry sources, this will also reduce the pressure on the public sector retail oil companies. State-owned Indian Oil Corporation (IOC), Bharat Petroleum Corporation Limited (BPCL) and Hindustan Petroleum Corporation Limited (HPCL) did not change the prices of petrol and diesel for a record 131 days.
Prices have remained the same despite a jump of more than 60 per cent in the cost of raw materials. There were apprehensions that companies may increase fuel prices after assembly elections in five states, including Uttar Pradesh, are completed last week. But he kept the price intact and did not give the opposition parties a chance to corner the government in the second phase of Parliament’s budget session starting Monday. A senior official said, “Reduction in crude oil prices is definitely a good sign for petroleum companies… they are incurring a loss of Rs 12-13 per liter on the sale of petrol and diesel considering the marketing margin. Since November 4, when the price of crude oil in the international market was $ 81 per barrel, the companies have not increased the prices.
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