IOC hints at cut in petrol price
New Delhi   09-Nov-2011

IndianOil (IOC), which has the largest number of petrol pumps in the country, indicated on Tuesday that it may cut petrol prices in case international crude oil prices continue to decline and the rupee does not depreciate.

“I cannot say today if the prices will be reduced. We will take a call on November 15. It is still some days away. Every one rupee dip against the dollar adds up to Rs 0.90 per litre to the retail price. So, it is very essential that the rupee should not depreciate. Also, oil prices should reduce for us to consider a reduction in petrol prices,” said IOC chairman, Mr R. S. Butola.

PSU oil marketing companies on Thursday hiked petrol prices by Rs 1.80 per litre in Delhi to offset the increase in the cost of import of crude oil.

The government has been under tremendous pressure from both allies and opposition to roll back the price increase. Trinamool Congress MPs met the Prime Minister, Dr Manmohan Singh, on Tuesday to register their protest over the latest hike in petrol prices. Petrol prices have been hiked four times this year and ten times since petrol prices were decontrolled last year in June. Also in June this year government had hiked the prices of diesel by Rs 3 a litre, kerosene Rs 2 a litre and LPG by Rs 50 a cylinder.

The petrol prices were deregulated last year and technically PSU oil companies are free to hike their price in line with international crude oil prices.

PSU oil marketing companies are expected to lose over Rs 130,000 crore this fiscal on selling diesel, domestic LPG and kerosene at subsidised rates.

Currently the PSU oil marketing companies are daily losing Rs 319 crore on the sale of diesel, PDS kerosene and domestic LPG at subsidised rates. During April to September period the loss on these three product was Rs 65,000 crore.

The government is losing Rs 8.58 on the sale of every litre of diesel, Rs 26 per litre on kerosene and Rs 282 on per LPG cylinder.