Bulk diesel prices that have been on a decline for some weeks now were reduced further during the latest fortnightly revision by almost ₹4 a litre.
Effective August 16, the price is ₹116.06 per litre in Hyderabad as against the ₹120.05 at which it was made available to bulk consumers since August 1.
While the latest revision has narrowed the gap between bulk and pump prices, the ₹18.24 difference is enough incentive for the former segment of users to fill up at retail outlets (petrol bunks) of the national oil marketing companies. Purchasing fuel from the outlets to save on the costs has become a routine for most bulk consumers, including state transport corporations, ever since the prices started shooting up.
The present price of bulk diesel is more than ₹27 lower compared to the ₹143.22 a litre in the first half of July. The oil marketing companies had slashed the price by over ₹13 a litre on July 16 and followed it up by reducing ₹10 more earlier this month. A sharp increase in the diesel prices earlier this year resulted in bus commuters shelling out besides having a spiralling effect on prices of various daily use commodities.
Diesel at retail outlets in Hyderabad is dispensed at ₹97.82 a litre, a price that remains unchanged for over three months. The recent reduction in the price for bulk users is only bound to raise expectations among retail consumers of a downward revision in the pump prices of diesel.
Though the downward revisions in bulk diesel prices is linked to international product as well as crude oil prices, the oil companies would prefer not to change the pump prices of petrol and diesel on account of keeping them unchanged even when the raw material costs soared earlier this year. Fitch Ratings had recently said marketing losses on account of price-freezes for petrol, diesel and liquefied petroleum gas (LPG) during recent periods of elevated crude-oil prices may pressure the profitability and consequently the credit metrics of the oil marketing companies.
