Whenever the mathematics of crude oil prices goes wrong in the international market, the heartbeats of the common man increase. The first fear that comes in the mind is that the prices of petrol and diesel may increase again and the entire budget of the house may get affected. But, this time a very reassuring news has come out for the consumers. Oil retail companies have made full preparations to save the general public from the blow of inflation. According to a news in Economics Times, to save customers from the heat of inflation, companies are now buying diesel from refineries at huge discounts.
Oil companies making ‘smart deals’ with refineries
In fact, when oil becomes expensive at the international level, marketing companies directly pass the burden on the customers to save their losses. But this time the situation is being handled differently. These days, Indian fuel retailers are purchasing diesel directly from refinery companies at concessional rates. Industry sources clearly say that the sole aim of this step is to protect customers from the shock of any possible ‘price hike’. Oil selling companies themselves are trying to absorb this pressure, so that fuel prices remain stable in the country and there is no additional burden on the pockets of the common man.
What is this new ‘Pricing Formula’?
A new business formula is working behind this entire process. According to the information, a new pricing mechanism has now been adopted to decide fuel prices. This new formula is completely based on India’s ‘Crude Import Price’ (import price of crude oil). This simply means that the mathematics of future prices will be decided on the basis of the average price at which our country will buy crude oil from foreign countries and bring it to Indian ports. This is a very transparent method, which is helping in bringing stability in the market.
From freight transportation to kitchen… you will get direct benefits
From the economic point of view, diesel is not just a fuel, but it is an important tool to control overall inflation. In India, diesel is used in everything from trucks to heavy goods vehicles and farming equipment. If retail companies are successful in keeping the price stable at the pumps by purchasing diesel at a discount, it will have a direct impact on transportation costs. If freight transportation will not be expensive, then the prices of vegetables, fruits, milk and ration reaching the markets will also remain under control. That is, this business move of oil companies is directly preventing your kitchen expenses from increasing.
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