India again encounters a hike in petrol prices by Rs. 1.82 a litre after a recent hike in petrol by Rs. 3.14 a litre on 16th Sep 2011.
Crude oil is hovering at around $108 per barrel in international markets. At current exchange rate, petrol price of Rs 66.84 per litre in Delhi corresponds to about $102 per barrel equivalent of crude oil price. The loss on petrol at present is Rs 1.50 per litre and after including local levies; the desired increase in retail prices is Rs 1.82 per litre.
An official from the Oil ministry said, “It may happen. We will see."
Though the pricing of petrol was freed from government controls in June last year, state-owned oil firms 'informally' take directions from the oil ministry. It remains to be seen if the government will concede to the demand of oil companies just before the winter session of Parliament.
State-owned oil companies Indian Oil, Hindustan Petroleum and Bharat Petroleum last hiked petrol prices by Rs 3.14 a litre on September 16 when the rupee was ruling at about 48 to one US dollar. The local currency has depreciated further and is now trading at over 49 against the American unit.
An official from the Oil ministry said, “It may happen. We will see."
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