The hike on petrol prices can be around Rs. 3 per litre which will be effective from Thursday midnight. A top official at one of the three state-run fuel retailers said, “Looks like the hike will be over Rs. 3 per litre”.
The Indian Oil Corporation (IOC), the Bharat Petroleum Corp (BPCL) and the Hindsutan Petroleum Corporation (HPCL) now lose Rs. 2.61 per litre due to high international crude oil prices and with rupee touching two-year low against the U.S. dollar, the losses have increased the cost of importing crude oil. “After adding local taxes, the hike needed at retail level comes to over Rs. 3 per litre,” said the official.
Petrol prices were last hiked by Rs. 5 per litre on May 15. At present it costs Rs. 63.70 per litre in Delhi. Petrol price was freed from the government control in June last year but the retail rates have not moved in line with cost as high inflation rate forced the oil companies to seek ‘advice’ from parent oil ministry before revising rates.
The IOC, the BPCL and the HPCL have lost Rs. 2,450 crore this fiscal on selling petrol below the cost.
Besides petrol, the three firms are losing Rs. 263 crore per day on selling diesel, domestic LPG and kerosene below the cost. Diesel is being sold at a subsidy of Rs. 6.05 a litre, kerosene at Rs. 23.25 per litre while domestic LPG rates are under-priced by Rs. 267 per 14.2 kg cylinder.
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