No immediate rollback of petrol price hike, say oil retailers

The public sector oil marketing companies ruled out an immediate rollback of petrol price hike. However, in bid to soothe frayed nerves they said that end of the fortnight (June 1) may see a revision if the international prices cool.

The three public sector oil companies – Indian Oil Corporation, Bharat Petroleum Corporation, Hindustan Petroleum Corporation – maintained that they had received no indications from the Government for a possible rollback.

Though the oil companies are free to decide on the petrol price, Government control continues. “It was a tough decision,” said IOC Chairman, Mr R.S. Butola.

“We were left with no option. But once the prices cool, we will review,” he said speaking to newspersons a day after announcing the price hike.

While the consumer is still coming to terms with the steep price hike, the market was abuzz with reports that the Government may consider revising prices of regulated products – diesel and domestic LPG. An empowered group of ministers (eGoM) headed by the Finance Minister, Mr Pranab Mukherjee, was said to meet on Friday to review diesel and domestic LPG prices. But, reports quoting the Finance Secretary, Mr R.S. Gujral, said the meeting is “likely to be deferred”.

On diesel and domestic LPG prices, the HPCL Chairman and Managing Director, Mr S. Roy Choudhury, said: “We haven't heard anything as yet.”

The oil companies review the prices on fortnightly basis (16{+t}{+h} and 30{+t}{+h} of every month). “We will see international prices and also rupee-dollar movement and then determine the retail price,” Mr Butola said.

“We have to catch the cycle now. Probably, on June 1, if prices come down, we will cut the price,” Mr Choudhury added.

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