Oil marketing companies (OMCs) have announced a cut in petrol prices by Rs 0.95 a litre with effect from midnight, to pass the impact of softening global rates on to customers. The fuel will cost Rs 67.24 in Delhi against the current price of Rs 68.19, an IndianOil statement says. The new price in Mumbai, Chennai and Kolkata will be Rs 73.53 (-Rs 1.20), Rs 70.57 (-Rs 1.20) and Rs 74.55 (-Rs 1.19), respectively.
“Currently, global oil prices are relatively stable. But, there has been significant volatility in the rupee-dollar exchange rate. The trends in the international oil market and the exchange rate are being closely monitored and the same shall be reflected in future price changes,” IndianOil said.
Petrol prices were last revised on October 27, when they were raised by 29 paise to Rs 68.19 a litre in Delhi, following an increase in the commission paid to petrol pump dealers.
Petrol was decontrolled in June 2010 but companies have failed to pass on the regular desired increase to customers due to political pressure. State-run OMCs — IndianOil, Bharat Petroleum Corp Ltd and Hindustan Petroleum Corp Ltd — have incurred a loss of around Rs 2,600 crore on sale of petrol during April-September due to their inability to change retail selling prices to match market conditions. OMCs are also suffering under-recoveries on sale of three sensitive petroleum products — diesel (Rs 9.84 a litre), kerosene (Rs 31.30 a litre) and domestic cooking gas (Rs 478.50 on six subsidised cylinders for each consumer). Projected under-recovery on these products is expected to cross Rs 1.6 lakh crore for the current year against Rs 1.38 lakh crore last financial year.