Petrol price may hike by Rs. 3 per liter

This article was last updated on April 16, 2022

Canada: Oye! Times readers Get FREE $30 to spend on Amazon, Walmart…
USA: Oye! Times readers Get FREE $30 to spend on Amazon, Walmart…

Indian Oil (IOC), Bharat Petroleum (BPCL) and Hindustan Petroleum (HPCL) had last increased petrol price by Rs. 5 per liter in May. Diesel, domestic LPG and kerosene price were hiked in June by Rs. 3 per liter, Rs. 50 per cylinder and Rs. 2 per liter. In June last year, the government had relaxed control over petrol price but continued to utter diesel, domestic LPG and kerosene rates. However, petrol price has not changed in accordance with its cost, keeping in mind the government’s concerns on price rise which climbed to 9.78 percent in August.

"The losses on the four products means that oil companies even have been rented out to meet even their working capital requirement," the official said. The combined borrowing levels of the oil marketing companies has amplified from Rs. 96,700 crore in March 2011 to Rs. 120,000 crore in August 2011. "The boost is mostly towards short term borrowings to fund working capital requirements," he said. The storage bin of crude oil thatIndiabuys had averaged USD 85.09 per barrel in year 2010-11.

From April-September, it has averaged USD 111.64 per barrel, a 31 percent increase over the last fiscal year (2010-11). The Indian storage of crude oil averaged USD 106.94 per barrel in August and USD 110.88 a barrel in September. "Due to solidification of crude/petroleum product prices in the international market and reduction of rupee viz-a-viz dollar, the under-recoveries of oil marketing companies have been increasing during year 2011-12," the official added.

Article viewed on Oye! Times, www.oyetimes.com