Pay Rs 2/lt more for petrol from midnight as IOC ups rates
Indian Oil Corporation has raised petrol prices by another Rs 1.80 per litre from midnight. And, sources tell CNBC-TV18 that other oil marketing companies (OMCs) too will follow suit and hike prices from midnight.
November 04, 2011 / 09:43 AM IST
Days after the oil minister distanced himself from the question of another hike in petrol prices, oil marketing companies have taken action. Indian Oil Corporation has raised petrol prices by another Rs 1.80 per litre from midnight. (HERE is what PK Goyal, director of Finance at IOC had to say)
Sources tell CNBC-TV18 that other oil marketing companies (OMCs) including HPCL and BPCL too will follow suit and hike prices from midnight.
This hike, OMCs say, is necessary as the Rs 15,000 crore compensation promised by the Centre is yet to be released. Moreover, a depreciating rupee as well as the lack of subsidy relief is hurting the liquidity position of these companies.
OMCs continue to lose Rs 333 crore everyday by selling subsidised LPG, kerosene and diesel.
This is the second hike in petrol prices in less than two months and it came on a day when the food inflation rose "dangerously" to 12.21% for the week ended October 22.
Oil marketing companies had earlier hiked petrol prices by Rs 3.14 a litre on September 16 when the rupee was ruling at about 48 to a US dollar. The government had in June last year deregulated or freed petrol from all price controls but the retail rates have not moved in line with cost as high inflation rate forced the oil companies to seek 'advice' from parent oil ministry before revising rates.