The rupee is currently trading at Rs 59.95 against the dollar A one rupee movement against the greenback increased under-recoveries by around Rs 9,000 crore for oil companies last month.
The fair trade regulator will look into anti-competitive practise adopted by ethanol makers while bidding for supplying the commodity to oil retaillers.
The oil ministry is pushing state-run oil companies to revise petrol price daily in line with international rates and the rupee's value against the dollar, exclusive sources tell CNBC-TV18.
Oil companies may cut losses by around Rs 10,000 crore by year-end on regular diesel price hikes, say analysts. Bharat Petroleum, Hindustan Petroleum and Indian Oil Corp are still losing around Rs 9.50/litre on diesel sale, despite raising price for the second time in a month, after the government allowed them to do so.
Oil marketing companies (OMCs) continue to take a hit on sale of petroleum products due to delay in government subsidy.