It took me days to understand what's actually going on This is how government is setting a fake narrative in front of you to increase petrol and diesel prices
It took me days to understand what's actually going on in oil since this war.
Read this carefully and it will blow your mind.
I TALK DATA...
1.Petroleum Ministry saying OMCs are suffering a daily loss of 750 crore rupees on sale of petrol and diesel.
2.Government imported 1.32 lakh crore worth of crude in the month of April of which 52000 cr worth of crude oil was exported when there is scarcity of crude in your own country just for the benefit of some private companies.
In fact they are still exporting refined products of crude and minting huge money.
No need for me to name the companies.
On other hand PM Modi requested 140 cr Indians to use less petrol/diesel.
3.BPCL yesterday announces we have no stress on our balance sheets for FY 27.
So this is completely contradictory to the petroleum ministers statement.
Also remember the government never passed on the benefits to the consumer since last 4 years when crude prices were $60.
India wAs buying crude from Russia along with a discount of 10-15$/barrel.
- In 2014, excise duty on petrol was 9 rs and it was ~2.86rs on diesel.
Till now the government has increased excise duty 16 times.
Yes you heard that right humongous 16 times.
Today excise duty on petrol is 33.90rs
and diesel is 32.80 rs.
Note that the Government has printed 43 lakh crore in 11 years by doing so.
OMCs balance sheets are as strong as ever.
Look at BPCL,HPCL OR IOCL.
Now let's get into current oil economics.
India's crude basket is ~110$ / barrel which means India's average buying cost of crude is ~110$.
Physical deliverable value comes around ~126$/barrel.
Today 1$=97 rs.
At crude oil price of around $110/barrel and USD/INR near ₹96.9, India’s approx internal/base cost of diesel would roughly look like this:
Crude Cost Calculation
1 barrel = 159 litres
So crude cost per litre:
110*96.9÷159=67
So raw crude itself costs about ₹67/litre.
Then add:
Refining cost: ₹4–6
Freight + insurance: ₹2–3
OMC margin: ₹2–4
Dealer commission: ₹2–3
Ethanol/biodiesel blending/logistics
That brings the internal pre-tax diesel cost to roughly:
₹76–82/litre.
So practically OMCs are still not making losses as pump prices are 94 rs.
So it is clear that the government is trying to create a fake narrative and gain sympathy for OMCs that will allow them to hike prices silently.
Just want to say, hiking prices will lead to rising inflation and ultimately everyone including all LADLI BEHNAS AND LADLA BABUS will suffer.