Industry & Economy
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Petroleum
`Too early to consider oil rate hike'
Our Bureau
Kolkata
,
July 6
Oil marketing companies (OMCs) are yet to receive any communication from the Government for effecting commensurate price rise if India basket crude (comprising 55 per cent West Asian variety and 45 per cent Dated Brent) crosses $70.
In fact, the benchmark crude price, used for the last price escalation, is yet to be disclosed officially.
The Union Government, it may be mentioned, has indicated such an option while announcing price rise and other compensation package last month to help companies tide over the under-recoveries.
"There is no price rise in the vicinity," a BPCL official said. "Moreover, as the product prices (motor spirit) are on a downturn, there is hardly any basis for such a proposition. We can take any such option seriously only if the average India crude prices rule over the benchmark," he added.
"The average India basket price was below $70 last month and has moved up only in the last three days. We think it is too early to consider such issues," said a senior official in IOC.
Meanwhile, as the gap between the product prices and crude prices are reducing, the refining margin may be affected.
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