"Other fuel retailers (BPCL and HPCL) will also reduce petrol rates," an oil ministry official said.
Presently, the international oil prices are relatively stable. However, there has been significant volatility in the rupee-dollar exchange rate and is currently very weak with uncertainty about its future direction, IOCsaid in a statement..
"The trends in the international oil market- and INR-USD exchange rate are being closely monitored and the same shall be reflected in future price changes," it said.
It may be noted that oil marketing companies are bearing the burden of a loss of over Rs 2000 crore in sale of petrol between April and September due to inability to change retail selling prices to the desired extent in line with market conditions, it said.
As is known, in addition to loss on sale of petrol, OMCs ere also suffering under-recovery on sale of three sensitive petroleum products, namely diesel (Rs 9.84/litre), kerosene (Rs 31.30/litre) & cooking gas (Rs 478.50/cyl), it said.
Projected under-recovery on these products is expected to cross Rs160,000 crore for the current financial year.
cut by Rs 0.95 per litre with effect from midnight.
NEW DELHI: Indian Oil Corp (IOC), country's biggest fuel retailer has reduced petrol prices by Rs 0.95 per litre (excluding of local levies) from Friday.
"Other fuel retailers (BPCL and HPCL) will also reduce petrol rates," an oil ministry official said.
Presently, the international oil prices are relatively stable. However, there has been significant volatility in the rupee-dollar exchange rate and is currently very weak with uncertainty about its future direction, IOC said in a statement..
"The trends in the international oil market- and INR-USD exchange rate are being closely monitored and the same shall be reflected in future price changes," it said.
It may be noted that oil marketing companies are bearing the burden of a loss of over Rs 2000 crore in sale of petrol between April and September due to inability to change retail selling prices to the desired extent in line with market conditions, it said.
As is known, in addition to loss on sale of petrol, OMCs ere also suffering under-recovery on sale of three sensitive petroleum products, namely diesel (Rs 9.84/litre), kerosene (Rs 31.30/litre) & cooking gas (Rs 478.50/cyl), it said.
Projected under-recovery on these products is expected to cross Rs160,000 crore for the current financial year.
Prices vary from city to city due to differential local sales tax or VAT rates. The last reduction in petrol price before this was the 56-paise cut to Rs 67.90 a litre on October 9. Thereafter, the rate was hiked by 29 paise following government decision to raise the commission paid to petrol pump dealers.
Global gasoline rates (against which the domestic price of petrol is benchmarked) have come down, but the rupee value against the US dollar remains volatile.
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.
"Other fuel retailers (BPCL and HPCL) will also reduce petrol rates," an oil ministry official said.
Presently, the international oil prices are relatively stable. However, there has been significant volatility in the rupee-dollar exchange rate and is currently very weak with uncertainty about its future direction, IOC said in a statement..
"The trends in the international oil market- and INR-USD exchange rate are being closely monitored and the same shall be reflected in future price changes," it said.
It may be noted that oil marketing companies are bearing the burden of a loss of over Rs 2000 crore in sale of petrol between April and September due to inability to change retail selling prices to the desired extent in line with market conditions, it said.
As is known, in addition to loss on sale of petrol, OMCs ere also suffering under-recovery on sale of three sensitive petroleum products, namely diesel (Rs 9.84/litre), kerosene (Rs 31.30/litre) & cooking gas (Rs 478.50/cyl), it said.
Projected under-recovery on these products is expected to cross Rs160,000 crore for the current financial year.
| New Delhi | Mumbai | Chennai | Kolkata | Hyderabad | Bengaluru | |
| Proposed RSP (Rs/ litre) | 67.24 | 73.53 | 70.57 | 74.55 | 73.73 | 74.22 |
| Current RSP (Rs /litre) | 68.19 | 74.73 | 71.77 | 75.74 | 74.98 | 75.47 |
| Decrease (Rs /litre) | (0.95) | (1.20) | (1.20) | (1.19) | (1.25) | (1.25) |
Prices vary from city to city due to differential local sales tax or VAT rates. The last reduction in petrol price before this was the 56-paise cut to Rs 67.90 a litre on October 9. Thereafter, the rate was hiked by 29 paise following government decision to raise the commission paid to petrol pump dealers.
Global gasoline rates (against which the domestic price of petrol is benchmarked) have come down, but the rupee value against the US dollar remains volatile.
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.
Source:Economic Times
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