It has been decided to revise the MS prices downward by Rs.2.02 per litre (including State levies in Delhi). The decrease in other States will vary depending upon the rate of State VAT / Sales Tax.
MS prices are reviewed on fortnightly basis. Since last pricing cycle, though international oil prices have decreased quite significantly, the USD-INR exchange rate has shown further deterioration. While Indian basket of crude has reduced from $113.08/bbl to $106.68/bbl and MS international price has also declined from $124.42/bbl to $115.81/bbl, USD-INR exchange rate has deteriorated from Rs.53.17/$ to Rs.54.96/$.
In addition, OMCs are suffering high level of under-recoveries on the three sensitive petroleum products, namely HSD, SKO (PDS) and LPG (Dom). Last revision in selling price of sensitive products was undertaken in June'11. As compared with last price change, current under-recovery on HSD has gone up from Rs.6.13 per litre to Rs.12.53 per litre, for SKO (PDS) from Rs.24.16 per litre to Rs.30.53 per litre and for LPG (Dom) from Rs.331.13 per cylinder to Rs.396.00 per cylinder as on 1st June'12. At these rates, it is estimated that under-recovery on sale of sensitive products during 2012-13 shall be around Rs.96000 crore (Industry: Rs.181000 crore)
OMCs continue to closely monitor the international MS prices and exchange rates to assess their potential impact on selling prices in future.