Oil companies push for Rs 5 per litre hike in petrol price

Tuesday, March 6, 2012: With electioneering in five states coming to an end, state owned oil companies are pushing for raising petrol price by over Rs 5 per litre but the actual increase would depend on the government nod.
“We are losing Rs 5.10 per litre on petrol currently,” a senior oil company official said. “With counting for Assembly elections in five states ending today, we would be approaching the government for appropriate directions on price revision.”
Oil firms had last revised petrol prices on December 1 after which rates have not been changed because of Assembly elections in states like Uttar Pradesh.
IndianOil, Bharat Petroleum and Hindustan Petroleum together have lost over Rs 900 crore since the last revision which was done at international gasoline price (the benchmark for deciding domestic retail rates) of $ 109 per barrel.
Gasoline rates have since risen to $ 130.71 a barrel. “In all probability, petrol price will be increased but by how much is for the government to decide,” the official said.
With Congress faring poorly in the Assembly polls, it remains to be seen if the UPA—government would give nod for an increase just ahead of the Budget session of Parliament which begins on March 12.