Issued by the office of Mr. B.M. Bansal, Chairman, Indian Oil Corporation Ltd.
Kolkata   20-Jan-2011

Based on current price levels in the international oil market, the desired increase in the retail selling prices (RSPs) of petrol in a market like New Delhi should have been Rs.3.72/Lt. However. IndianOil has chosen to soften the impact on the customer by increasing the price by Rs.2.50/Lt. only and not passing on the balance required increase of Rs.1.22/Lr. Even during the previous revision of the price of petrol with effect from 16th Dec'10, as against the required increase of Rs.4.90/Lt. in the price at New Delhi, the actual increase was confined to Rs-2.96/Lt. thus leaving a gap of Rs.1.94/Lt. in anticipation of a likely fall in the price levels in the global oil market. However, with the persistent rising trend in the international oil prices, average prices of the Indian crude basket have gone up from $87.83/bbl during the earlier petrol price revision in December to the current level of $92.31 /bbl amounting to an increase of $4.48/bbl. Average global prices of petrol during the same period have gone through an even higher increase of $5.17/bbl, rising from a level of $95.30/bbl to $100.47/bbl.