After onions, petrol adds to the pinch from today

Discussion in 'Economy & Infrastructure' started by Parthy, Jan 17, 2011.

  1. Parthy

    Parthy Air Warrior Senior Member

    Aug 18, 2010
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    By the time you read this, petrol would have become costlier by Rs 2.52 per litre. Only a month ago, petrol prices had been raised by Rs 3. So, within four weeks, petrol has become dearer by Rs 5.50 to pinch many household budgets that are already tight because of spiralling inflation.

    State-run oil companies decided on Saturday evening to revise pump prices for the sixth time since the government lifted controls on fuel pricing in June. They argued that since the last hike on December 15, the mix of crude they buy has gone past $92 a barrel, whereas their last price was tuned to $89-90 a barrel of crude.

    While this ''price adjustment'' — as oil companies coyly describe price hikes — would keep their bottomlines healthy, the common man's burden is bound to grow. The fuel index accounts for less than one per cent of the overall inflation index, but still this hike will only nudge it up and make the government's inability to rein in prices appear starker.

    The opposition parties lashed out at the government on Saturday, describing the petrol price hike as ''anti-people''. Both the BJP and CPM demanded that the hike be rolled back.

    To escape the charge of cartelization, the three oil marketing companies have kept a marginal difference in their petrol prices. IndianOil Corporation, the country's largest fuel retailer, will raise its price by Rs 2.50 per litre, while Hindustan Petroleum will raise rates by Rs 2.54 and Bharat Petroleum by Rs 2.53.

    Petrol at IOC outlets in Delhi will now cost Rs 58.37 a litre. At HPCL and BPCL pumps, the fuel will be sold at Rs 58.39 per litre. Petrol at HPCL pumps at present costs Rs 55.85 per litre, while it is priced at Rs 55.86 a litre at BPCL outlets. State-run retailers deliberately keep this marginal difference to avoid charges of carterlization from private refiner-marketers such as Reliance Industries, Essar Oil and Shell.

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