State-owned Indian Oil Corporation (IOC), Bharat Petroleum Corporation Ltd (BPCL), and Hindustan Petroleum Corporation Ltd (HPCL) may lower petrol and diesel rates in February ahead of the Lok Sabha elections. Since last year, state-run oil companies have ceased daily price revisions for petrol and diesel fuel. Sources told Hindustan Times that the corporations will make a decision after releasing their Q3 FY24 earnings this month.

The combined net profit of the three enterprises until Q2 FY24 was Rs 57,091.87 crore, a more than 4,917 percent increase from Rs 1,137.89 combined net profit in FY 2022-23. Despite falling global crude oil prices, the corporations are likely to generate a net profit of Rs 75,000 crore by the end of Q3 FY24.

The measure could assist to reduce inflation, which has become a source of concern for both the government and the Reserve Bank of India. It might also be a significant move ahead of the 2024 General Elections, which are slated for April-May.

"Due to greater marketing margins on gasoline sales, the three OMCs reported significant net profit in Q1 and Q2, and the trend will continue in Q3. Following the results at the end of this month, they may consider lowering petrol and diesel prices by Rs 5 to Rs 10 per litre, providing some cushion for potential increases in international oil costs. An official informed HT that the corporations will make a choice after consulting with their stakeholders.

Hindustan Petroleum Corporation Ltd (HPCL) has stated that it would disclose its third-quarter results on January 27. Indian Oil Corporation (IOC) and Bharat Petroleum Corporation Ltd. (BPCL) are also expected to make statements around the same time.

India, the world's third-largest oil importer and user, imports more than 80 percent of its oil. The OMCs dominate the domestic fuel retail business, with a market share of more than 90% and strong influence over private merchants' pricing.

The last nationwide gasoline price change occurred on May 21, 2022, when Finance Minister Nirmala Sitharaman decreased the excise duty on petrol by Rs 8 per litre and diesel by Rs 6 per liter.

For more than a year, the price of petrol in Delhi has been Rs 96.72 per litre, while diesel costs Rs 89.62 per litre. In Mumbai, petrol costs Rs 106.31 per litre, while diesel costs Rs 94.27. In Kolkata, petrol costs Rs 106.31 per litre, while diesel costs Rs 92.76 per litre. In Chennai, petrol costs Rs 102.63 a litre, while diesel costs Rs 94.24.