NEW DELHI: State-owned Indian oil corp,
the nation's largest oil firm, today hinted at an imminent hike
in petrol prices, whose rates have not been revised since January in view of
elections in states like West Bengal.
"We would do it (increase rate) at
the earliest possible," IOC Chairman Ranbir Singh Butola told reporters here.
In his first interaction with media after taking over as the Chairman of
the nation's largest fuel marketing firm, Butola said IOC and other state firms
had consciously decided not to revise rates of petrol to keep "the environment
happy".
The government had in June last year freed petrol pricing from
its control and state-run firms had on as many as seven occasions changed rates
in line with international prices before deciding in the second half of January
to freeze rates.
"We live in an environment (comprising of the people
and the government). If we take certain action, the environment is going to turn
against us," he said.
IOC is losing a tad less than Rs 7 per litre on
petrol currently. After including the local sales tax or VAT, the desired
increase in price comes to about Rs 7.50 a litre in Delhi.
"In our
consideration, we decided to take these losses for sometime," Butola said.
Asked if the petrol price will be revised soon after assembly elections
are completed on May 10, he said a review "will take place soon."
He,
however, deflected questions on state firms acting at the behest of the
government in not revising petrol prices.
IOC was losing Rs 297 crore
per day on selling diesel, domestic LPG and kerosene at government-controlled
rates, he said.
"We are losing Rs 18.11 per litre on diesel, Rs 28.33 a
litre on kerosene and Rs 315.86 per 14.2-kg domestic LPG cylinder," he said.
The company, whose debt is growing at Rs 5,000-6,000 crore every month
on unchanged fuel prices, expects government to compensate it for the losses.
Its debt stood at about Rs 53,000 crore at the end of March.
While retail price of petrol is benchmarked at USD 98 per barrel of
international rates, the same for diesel is at USD 72-73 equivalent.
The basket of crude oil that India buys averages USD 120 per barrel currently
the nation's largest oil firm, today hinted at an imminent hike
in petrol prices, whose rates have not been revised since January in view of
elections in states like West Bengal.
"We would do it (increase rate) at
the earliest possible," IOC Chairman Ranbir Singh Butola told reporters here.
In his first interaction with media after taking over as the Chairman of
the nation's largest fuel marketing firm, Butola said IOC and other state firms
had consciously decided not to revise rates of petrol to keep "the environment
happy".
The government had in June last year freed petrol pricing from
its control and state-run firms had on as many as seven occasions changed rates
in line with international prices before deciding in the second half of January
to freeze rates.
"We live in an environment (comprising of the people
and the government). If we take certain action, the environment is going to turn
against us," he said.
IOC is losing a tad less than Rs 7 per litre on
petrol currently. After including the local sales tax or VAT, the desired
increase in price comes to about Rs 7.50 a litre in Delhi.
"In our
consideration, we decided to take these losses for sometime," Butola said.
Asked if the petrol price will be revised soon after assembly elections
are completed on May 10, he said a review "will take place soon."
He,
however, deflected questions on state firms acting at the behest of the
government in not revising petrol prices.
IOC was losing Rs 297 crore
per day on selling diesel, domestic LPG and kerosene at government-controlled
rates, he said.
"We are losing Rs 18.11 per litre on diesel, Rs 28.33 a
litre on kerosene and Rs 315.86 per 14.2-kg domestic LPG cylinder," he said.
The company, whose debt is growing at Rs 5,000-6,000 crore every month
on unchanged fuel prices, expects government to compensate it for the losses.
Its debt stood at about Rs 53,000 crore at the end of March.
While retail price of petrol is benchmarked at USD 98 per barrel of
international rates, the same for diesel is at USD 72-73 equivalent.
The basket of crude oil that India buys averages USD 120 per barrel currently
BY ANIMA SINHA
PGDM - 2 sem
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