Petrol price may go up by Rs 3 per litre

Discussion in 'Indian Automotive Scene' started by Dhillon, Sep 14, 2011.

  1. Dhillon

    Dhillon Administrator Staff Member

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    State-owned oil firms may have to raise petrol prices by as much as Rs 3 per litre as the rupee touched two-year low against the US dollar, increasing the cost of importing crude oil.

    "Oil retailers are losing Rs 2.61 per litre or Rs 15 crore per day on sale of petrol. Together with local taxes, the hike needed to level domestic rates with international prices is about Rs 3 per litre," a top government official said.

    IOC, BPCL and HPCL have lost Rs 2,450 crore this fiscal on selling petrol -- whose rates were freed from government control in June last year -- below the cost.

    "At current rate, oil firms will accrue another Rs 2,850 crore of loss on sale of petrol, taking the total loss on a fuel that was freed from control, to Rs 5,300 crore for the full fiscal," the official said, adding, "Oil firms will have to take a call on raising petrol price soon."

    Besides petrol, the three firms are losing Rs 263 crore per day on selling diesel, domestic LPG and kerosene below cost. Diesel is being sold at a subsidy of Rs 6.05 a litre, kerosene at Rs 23.25 per litre while domestic LPG rates are under-priced by Rs 267 per 14.2-kg cylinder.

    "The industry lost around Rs 65,000 crore in the first half of the current fiscal on the three products and for the full year the revenue loss is estimated at Rs 121,571 crore at the price of Indian basket at $110 per barrel," said the official.

    Rupee fell to 48 per dollar today for the first time since September 2009. "Every rupee depreciation, the under- recovery (revenue loss) increases annually by around Rs 9,000 crore," he said, underscoring the need for action on the price front on all the three products.
     
  2. GTD

    GTD Super Moderator

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    Again?

    How about getting in some jobs so people can pay for that.
     
  3. Dhhawal

    Dhhawal New Member

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    well the people can hit back..even if for a day, if everybody relents and doesn't get any petrol/diesel filled in thier cars, the state owned Oil companies will suffer a loss which will amount to one working month for free..its a good way to show descent..esepcially because it just involved sitting at home doing nothing..something i know for a fact that everybody is fond of :D
     
  4. Codename.47

    Codename.47 Guest

    thats so true
     

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