Companies

PSU oil retailers mull petrol price hike

Richa Mishra Manisha Jha New Delhi | Updated on March 12, 2018

The public sector oil retailers, under pressure due to continued volatility in global crude oil and product prices coupled with fluctuations in exchange rates, are considering a possible petrol price hike.

Hindustan Petroleum Corporation Ltd, Director (Finance), Mr B Mukherjee, said: “We are at present losing Rs 1.5 a litre on petrol…To make up for this loss a desired increase in retail price should be at least Rs 1.82 a litre.”

Although the retailers – Indian Oil Corporation, Bharat Petroleum Corporation, and Hindustan Petroleum Corporation – have the freedom to sell petrol at a market price, they still exercise restraint.

They sell diesel, kerosene sold under public distribution system, and domestic LPG at a Government controlled price. As on November 1, the companies are losing Rs 9.27a litre on diesel, Rs 26.94 a litre on kerosene, and Rs 260.50 on every domestic cylinder.

The price at which Indian refiners buy their crude oil stood at $106 a barrel (Rs 5,211.99 a barrel) on Monday. During the first half of the current fiscal, the oil retailers reported a total under recovery of Rs 64,900 crore.

Published on November 01, 2011

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