Oil cos likely to rise petrol diesel rates after state polls

By: | Updated: 27 Feb 2012 09:17 AM

Petrol and possibly diesel prices are likely to be hiked by Rs
2-4 per litre once Assembly elections in five states, including Uttar
Pradesh, are completed this week.

State-owned oil companies are losing about Rs 4 per litre on petrol,
industry officials said.

Oil firms had last revised petrol prices on December 1 after which rates
have not been changed because of Assembly elections. The industry, they
said, has lost about Rs 900 crore since the last revision which was done
at international gasoline price (the benchmark for deciding domestic
retail rates) was $109 per barrel. Gasoline rates have since risen to over
$125 a barrel.

"In all probability, petrol price will be increased after Assembly polls,"
an official said.

Another official said diesel rates too may be hiked before the Budget
session of Parliament that begins on March 12.

State-owned oil firms lose Rs 12,77 per litre on diesel. They also lose Rs
30.21 a litre on kerosene and Rs 378 per 14.2-kg domestic LPG cylinder.
Indian Oil Corp, Bharat Petroleum and Hindustan Petroleum are losing over
Rs 410 crore per day on sale of diesel, domestic LPG and kerosene.
Officials said the call on raising diesel prices would be taken by an
Empowered Group of Minister (EGoM) as and when it meets while petrol rates
would be revised by oil firms themselves.

Petrol price were freed from government control in June 2010 but rates
have not moved in tandem with imported cost. While petrol price were last
revised on December 1 when they were cut by Rs 0.78 per litre to Rs 65.64
per litre in Delhi, diesel currently costs Rs 40.91 a litre.

companies likely to rise rates

Also read: High
prices of oil, milk risk to inflation, says Pranab

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First Published: 27 Feb 2012 09:17 AM
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