No change in petrol prices as rupee firms up

State-owned oil companies today decided not to change petrol prices this fortnight in view of correction in rupee-dollar value.

"RBI action has led to rupee correcting by Re 1 per dollar and we feel we should wait for some time before making any changes in retail prices of petrol," an official of Indian Oil Corporation said.

"The fall in depreciation of rupee will be good for oil marketing companies," Oil Minister S Jaipal Reddy told reporters when asked about the impact of rupee movement on the oil marketing companies.

Oil companies were to review petrol prices yesterday but had postponed the decision till today as they were waiting for a clear political clearance for raising petrol by Rs 0.60 to 0.70 per litre.

Reddy met Finance Minister Pranab Mukherjee this evening and soon after the meeting oil companies announced that they will wait little longer to see the impact of RBI intervention on rupee-dollar movement.

Reddy, however, declined to comment on petrol prices after meeting Mukherjee.

Yesterday, rupee had tumbled to a record low of Rs 54.30 per dollar. However, the rupee gained 94 paise today to settle at Rs 52.70 per US dollar.

"In view of RBI's steps and strengthening of the rupee, the IOC management is reviewing the situation and will decide on petrol price revision at the appropriate time," an Indian Oil spokesperson said.