New Delhi, Dec 14 (PTI): Petrol prices may be hiked by Rs 0.65 per liter this week if state-owned oil firms manage to get political approval for the move.
While a fall in the rupee to an all-time low of Rs 53.75 per US dollar has resulted in an increase in the cost of oil imports, international rates of gasoline -- against which domestic petrol prices are benchmarked -- have also increased, a top source at a state-run oil firm has said.
"The under-recovery on petrol is Rs 0.55-0.56 per litre. After adding local sales tax, the desired increase in Delhi comes to Rs 0.65-0.66 a litre," he said, adding that the oil companies will review prices tomorrow and any change will be effective from December 16.
State-owned oil firms have cut petrol prices on two occasions in the past one month after international oil rates eased. The companies reduced petrol prices by Rs 2.22 per litre, or 3.2 per cent, from November 16 and followed this with a Rs 0.78 per litre cut from December 1.
The source, however, could not say if oil companies will go ahead with increasing prices tomorrow, in line with the practice of changing rates every fortnight. "The actual loss to us is only 50-55 paise. We can tolerate it for another fortnight if need be," he said.
Public sector oil firms, which revise petrol prices on the 1st and 16th of every month based on the average international rates of the previous fortnight, may informally consult the parent Petroleum Ministry before taking a decision. Parliament is in session and an increase in petrol prices may lead to protests by Opposition parties.
The price of gasoline has averaged USD 111.11 per barrel in Singapore this month, up from USD 108.25 a barrel in the previous fortnight.
Comment on this article
Tony Crasta, Mangalore/Sydney
Thu, Dec 15 2011The rate of inflation is very high presently in India (estimated to be 9%), and so, the rupee value has depreciated against the US dollar and other major currencies over a period, and though India has been growing up (GDP growth) at a much higher rate compared to the other developed nations, this growth is nullified by the massive inflation that has been taking place. Therefore, the costs of import of crude oil and other inputs have drastically increased, resulting in the high cost of petrol. Moreover, there has been a massive emergence and increase of middle and rich class people in India over the years, who buy more and more petrol driven cars and two wheeler vehicles, and so, the demand for petrol has gone through the roof. The Government should, therefore, strive to contain the inflation drastically and bring it down to below 5% to fall in line with the other developed nations and its trading partners. Of course, this is easily said than done. One way to bring down the petrol prices is of course to reduce the demand itself by way of people using more and more public transport like buses and trains.
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Canute, mangalore
Wed, Dec 14 2011To beat the fuel prises make some bycycle tracks in the city. It reduces polution and inprove health. Heart problems and obesity will disappear. Make a favor to Mangalorian people.
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Saifulla Sulaiman, Gerukatte, Abu Dhabi.
Wed, Dec 14 2011Here after The people should be taken some of the other ways to use instead of petrol for their routine tasks. even still people could not understand the present situation of our economy. the rupees cost has been decreasing frequently, it indicates present situation of Indian Economy. now the economy of India is not very strong as before .but politicians saying that Indian Economic status one of the richest status over the world. we know this is fake Dialog from politicians those dialog only for their political benefits nothing else.
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