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IOC reduces petrol price by 56 paise/litre

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In a marginal respite for those buying petrol from Indian Oil Corporation’s retail outlets, the public sector oil refiner-cum-retailer reduced prices by 56 paise a litre in Delhi (excluding State levies) effective Monday night.

The rates will vary from city-to-city depending on taxes. Hindustan Petroleum Corporation and Bharat Petroleum Corporation were still considering the numbers.

In a statement issued here, IOC said that it had decided to reduce petrol prices with effect from October 9. Sources said, this revision may be offset if the Government decides to accept the demand of petrol pump dealers for an increase in commission, which is always a pass through.

The desired reduction in petrol price was Rs 1.10 a litre, but the company has reduced the price by 56 paise, a source said, adding that this could be factoring in the commission.

The dealers have sought commission hike for every litre of petrol from Rs 1.49 to Rs 2.16 (up 0.67 paise), and from Rs 0.91 a litre to Rs 1.32 for every litre of diesel (up 0.41 paise). The Government is actively considering their demand.

The Indian Oil statement said that at present the rupee-dollar exchange rates had shown an appreciating trend. The international oil prices, however, continue to remain firm casting their shadow on petrol prices, it said.

The statement also said that the three public sector oil marketing companies (OMCs) had incurred a loss of about Rs 2,600 crore on sale of petrol during April-September period this fiscal due to inability to change retail selling prices in line with market conditions.

richa.mishra@thehindu.co.in

(This article was published on October 8, 2012)
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Comments:

I really don't understand the companies saying they incur loss while their quarterly and yearly results show huge profits. What is going wrong!!!

from:  Mahalakshmi N
Posted on: Oct 9, 2012 at 17:24 IST
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