NEW DELHI: The consequences of rise in international crude oil prices, touching USD 90 per barrel mark, will be seen in Indian market soon, with oil companies planning to raise petrol prices. An official of Indian Oil Corporation (IOC), on Tuesday said that a hike in petrol prices by Re 1-2 per liter is expected this week.
“We would have raised petrol price yesterday … we had the oil ministry consent to hike prices by Rs 1.90-1.95 per litre immediately after the winter session of Parliament ended yesterday, but at the last moment we are asked to wait for one or two more days,” an official of IndianOil (IOC), said.
The rise in crude oil prices which mounted to USD 90 per barrel, has hurt the profit motive of IOC and other state retailers Hindustan Petroleum (HPCL) and Bharat Petroleum (BPCL). They are losing Rs 4.17 per litre on selling petrol.
Petrol Price Hike“International prices are on the rise leading to widening of gap between domestic retail price and their cost of production,” the official said. He added that the oil firms have proposed for about Rs 2.50 per litre hike in prices. However, the political leadership is willing to concede only Rs 0.95-1.05 a litre.
As per the reports, Empowered Group of Ministers headed by Pranab Mukherjee will also consider the hike in diesel rates, which is scheduled on December 22. On diesel, the three firms including IOC, BPCL and HPCL are losing about Rs 5 a litre.
The last hike in petrol prices was on November 9 by Rs 0.32 per litre to Rs 52.91 a litre in Delhi even through the desired increase was about Rs 1.1 per litre. According to the available data, the oil retailers lose Rs 272.19 on the sale of every 14.2-kg LPG cylinder and Rs 17.72 per litre of kerosene.
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