Oil marketing companies (OMCs) are meeting petroleum ministry today to discuss petrol price hike by Rs 5/litre, reports CNBC-TV18's Nayantara Rai. The three major state-owned oil companies - Indian Oil, Hindustan Petroleum and Bharat Petroleum - had last hiked petrol prices by Rs 3.14 a litre on September 16 last year. Prices were first raised in the same year by Rs 3.5 per litre on January 16 and by Rs 5 per litre on May 15.
The government had in June 2010 deregulated, petrol, but the retail rates have not moved in line with the cost as high inflation due to state elections in the past few months. Pushing for the hike, oil companies had said they were losing Rs 1.50 per litre on petrol and after including local levies, the desired increase in retail prices was Rs 1.82 per litre. Now, with losses on sale of petrol escalating, OMCs seek to hike fuel prices in this meeting. According to media reports, these firms might ask for compensation from government for losses incurred on selling petrol. Till now, OMCs have lost nearly Rs 1,500 crore on selling petrol in the current financial year. Did You Read:Find out: How much have BPCL, HPCL lost on falling rupeeDiscover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
