Petrol price cut by Rs 1/litre - With effective from midnight

Discussion in 'Economy & Infrastructure' started by Daredevil, Nov 15, 2012.

  1. Daredevil

    Daredevil On Vacation! Administrator

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    The UPA government has cut the petrol price by Rs 1/litre (95 piase/litre precisely). Pricing will take effect today midnight.

    More to Follow.
     
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  3. Daredevil

    Daredevil On Vacation! Administrator

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    Petrol price cut by 95 paise: sources

    State-owned oil marketing companies today cut the price of petrol by 95 paise per litre (without tax), effective midnight, sources told NDTV.

    Petrol prices were last revised on October 27 when they were raised by 29 paise to Rs.68.19 per litre in Delhi after the government increased the commission paid to petrol pump dealers.

    There has been some reduction in gasoline rates (against which the domestic price of petrol is benchmarked against) giving us some margins (on petrol). But they have moved up again in the last few days.

    "Also, rupee has appreciated against the US dollar ... we have to take a view (on prices) keeping all these factors in mind," R S Butola, Chairman of Indian Oil Corp, the nation's largest fuel retailer, said earlier this month.

    The oil companies were making a margin of close to Rs.2 per litre, but considering the impact of rise in gasoline rate and appreciation in rupee, the net available margin may be just around Re 1 per litre.

    "We will review (prices) in next few days ... may be at the end of the week or early next week," Butola said.

    The government had in June 2010 deregulated petrol prices giving oil companies freedom to fix rates in line with the cost. However, prices have seldom moved in line with cost and oil companies buckled under political pressure to keep rates checked to help the government manage inflation.

    Butola said IOC lost Rs.1,167 crore on selling petrol below cost during the first six months of current fiscal. And since the product is deregulated, there will be no subsidy support from the budget to cover these losses.

    Hindustan Petroleum Corp Director (Finance) B Mukherjee said, "We are making profit on petrol like any other free product."

    With inputs from PTI

    Petrol price cut by 95 paise: sources - NDTVProfit.com
     

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