Petrol prices may be hiked in January
The petrol prices may go up by around Rs 1 per litre from next month as the rupee’s depreciation has pushed up the costs for PSU oil marketing companies.
The oil companies will be reviewing petrol prices on Saturday.
However, the decision to pass on the losses will mainly depend if these oil companies are able to get the political nod from the government.
With elections taking place in crucial states including in UP and Punjab, the government will be under-pressure not to hike petrol prices.
This is because the opposition parties could use it as an issue. Also, government allies like TMC and DMK have been opposing
hike in the petrol prices.
On December 15, the oil companies had decided not to hike petrol prices as they had felt that RBI intervention will result in the appreciation of the value of the rupee.
Crude price on last Friday for the Indian basket was at $ 107.53 per barrel, which comes to Rs 5,675 per barrel at exchange rate of Rs 52.78 per US dollar.
Recently, oil companies have started the practice of reviewing the prices of petrol in line with the global prices.
Last month, the PSU oil firms had cut in the petrol prices twice. But its prices have been hiked four times this year.
The oil firm are also losing money on the sale of diesel, kerosene and LPG at the subsidised rates.
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