Oil cos may not raise fuel prices today
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State-owned oil companies' losses on petrol sales have climbed to Rs 7.65 per litre but they may not raise fuel prices on Saturday pending a clarification from the government on duty reduction and subsidy compensation.
"We are losing about Rs 7.65 per litre on petrol and after adding 20 per cent sales tax, the desired increase in rates in Delhi is Rs 9.18 per litre," a top oil company official said.
Oil PSUs have asked government to make good the losses they incur on selling petrol if retail selling price of the fuel are not to be increased. Also, they have demanded a cut in the Rs 14.35 a litre excise duty on petrol.
"We had clearly told the government that if these demands are not accepted, then oil companies will have no option but to raise petrol prices," he said. "We haven't so far heard from the government and even though today is the day we were to revise prices, we have decided to wait for one more day."
Indian Oil, Hindustan Petroleum and Bharat Petroleum review retail prices at the end of every fortnight. On 30th/31st and 15th of every month, they use the average price of international benchmark and foreign exchange rate in fortnight to decide what should be the price of fuel from 1st and 16th of every month respectively.
The oil firms may review prices on Sunday. Global gasoline prices (against which domestic petrol prices are benchmarked) have risen from USD 109 a barrel at the time of last revision in December to USD 134 per barrel.
Oil firms had last revised dates on December 1 when rates were cut by Rs 0.78 per litre. Petrol at IOC pumps in Delhi is currently priced at Rs 65.64 per litre and the rates vary by a couple of paise at the pumps of BPCL and HPCL.
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