What is the mathematics of ‘break-even’ of petrol companies?
Break-even simply means neither profit nor loss. Government oil companies like IOCL, BPCL and HPCL were till now selling fuel at losses in many cases. According to reports, companies are incurring a loss of around Rs 30,000 crore every month because they were selling fuel at old prices, while crude oil had become expensive. Now, experts are not considering the increase of ₹ 3 as a complete improvement. He says that further adjustments in prices may still be needed to reach the real balance.