Cut in petrol price likely by Re 1 per litre
By PTI - NEW DELHI
09th November 2012 10:36 PM
Petrol price may be cut by as much as Re 1 per litre over the next few days when state-owned oil firms review rates.
Petrol prices were last revised on October 27 when they were raised by 29 paise to Rs. 68.19 per litre in Delhi following government raising the commission paid to petrol pump dealers.
"There has been some reduction in gasoline rates (against which the domestic price of petrol is benchmarked against) giving us some margins (on petrol). But they have moved up again in the last few days.
"Also, rupee has appreciated against the US dollar ... we have to take a view (on prices) keeping all these factors in mind," said RS Butola, chairman of Indian Oil Corp, the nation's largest fuel retailer.
The oil companies were making a margin of close to Rs. 2 per litre, but considering the impact of rise in gasoline rate and appreciation in rupee, the net available margin may be just around Re 1 per litre.
"We will review (prices) in next few days ... may be at the end of the week or early next week," Butola said.
The government had in June 2010 deregulated petrol prices giving oil companies freedom to fix rates in line with the cost. However, prices have seldom moved in line with cost and oil companies buckled under political pressure to keep rates checked to help the government manage inflation.
Butola said IOC lost Rs. 1,167 crore on selling petrol below cost during the first six months of current fiscal. And since the product is deregulated, there will be no subsidy support from the budget to cover these losses.
Hindustan Petroleum Corp director (finance) B Mukherjee said, "We are making profit on petrol like any other free product."
- For team Rahul, it’s good politics that will yield rich dividends for poor Indians
- Incredible India! Cuppa at Rs 1,200 is Chiru’s idea of sustainable tourism
- Farmer gets wise, beats drought with micro-irrigation
- Translation to go hi-tech; C-DAC to launch ‘Translator’
- Hurdles galore as UPA walks road to Ballot 2014
- BJP's post-Karnataka gloom: Neither united nor untainted
- Hit by chit fund scam Mamata faces biggest challenge in 2 years
- Western Ghats: Gadgil’s missive to Kasturirangan opens fresh debate
- Siddaramaiah has his way with team
- Key relationships
- Car makers run into diesel dilemma
- Jaya expresses grief over pontiff's death
- Man arrested for attempt to attack TV host Ranjini Haridas
- Rs 8K-crore plan for upgrading ICVs of Army
- Hyderabad beat Kolkata, make semis; put RCB out