With crude prices firming up in international markets, the oil marketing companies are gearing up to revise upwards petrol price by 65 paise a litre, after a review meeting on Thursday. However, this is subject to the government giving the green signal as Parliament is in session.
While the drastic fall of the rupee to an all-time low of Rs. 53.75 against the U.S. dollar has pushed up the cost of oil imports, the international rates of gasoline — against which domestic petrol prices are benchmarked — have also gone up, a senior OMC official said.
Under-recoveries on petrol stand at Re. 0.55-0.56 a litre. After adding the local sales tax, the desired increase in Delhi comes to Re. 0.65-0.66. Any change in price will be effective from December 16.
The OMCs cut petrol prices on two occasions in the past one month — by Rs. 2.22 a litre from November 16 and by 78 paise from December 1 — after international rates eased.
Public sector firms, which revise petrol prices on the 1st and 16th of every month based on the average international rates of the previous fortnight, are likely to consult the Petroleum and Natural Gas Ministry before taking a call on price hike.
Keywords: Petrol prices