MARKET UPDATE
| Petrol price cut by Rs 0.56 Tue, 09 Oct 2012 00:38:00 +0530 |
| Business Standard Economy Policy News IndianOil, the biggest oil marketing company, has cut petrol prices by Rs 0.56 a litre, with effect from midnight on Monday. The other oil marketing majors Bharat Petroleum and Hindustan Petroleum are expected to announce cuts shortly. In the capital, petrol will now cost around Rs 67.90 a litre. It has been decided to revise petrol prices downward by Rs 0.56 per litre (excluding State levies in Delhi) with effect from October 9, said a statement from IndianOil. Companies are learnt to be making a margin of around Rs 1.60 for every litre of petrol prior to this cut. Presently, the rupee-dollar exchange rate is showing an appreciating trend. International oil prices continue to remain firm, casting their shadow on petrol prices. There has been significant volatility in international oil prices and the exchange rate. The trends in the international oil market and exchange rate would be closely monitored and these would reflect in price changes, the statement said. Oil marketing companies IndianOil, Bharat Petroleum and Hindustan Petroleum have incurred a loss of Rs 2,600 crore approximately on sale of petrol during April-September period due to their inability to change retail selling prices to match market conditions. OMCs are also suffering under-recovery on sale of three sensitive petroleum products, namely diesel (Rs 11.65 a litre), kerosene (Rs 33.93 a litre) and domestic LPG (Rs 468.50 a cylinder). Projected under-recovery on these products is expected to cross Rs 160,000 crore for the current year against Rs 138,541 crore last fiscal. |
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