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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.
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