New Delhi: Petrol price could be hiked by Re1 a litre and diesel rates by 50 paise a litre by this weekend, according to indications available yesterday from state oil marketing companies (OMCs). “We will review the prices at the fortnightly review (due on Friday),” R S Butola, Chairman of Indian Oil Corporation said here. “We won’t say there is no possibility (of a price hike) but I cannot say what we will decide in that review,” he added.
With international oil rates firming up over the last month, OMCs are losing Rs1.32 a litre on petrol sales. Since fuel prices were last revised on January 17, the Indian basket of crude oil prices has increased by $5 per barrel to Rs114.68. Owing to the rupee’s depreciation during the last fortnight, crude oil price increased to Rs6,188.13 per barrel on February 12, as compared to Rs5,926 during the prior fortnight.
Oil firms are currently losing Rs9.22 per litre on sale of diesel, Rs31.6 per litre on sale of kerosene and Rs481 per cylinder of cooking gas (LPG). OMCs’ daily under-recovery is to the tune of Rs400 crore on the sale of subsidised petroleum products like diesel, kerosene and domestic LPG. The government last month partially deregulated diesel, allowing OMCs to raise rates in small doses of 40-50 paise a litre every month till losses are completely wiped out. IANS
