RIL may cut fuel prices

Reliance Industries may reduce the retail price of its motor spirits from October 1.The company is considering the move given that global crude oil prices have fallen significantly. An announcement to this effect is expected shortly.

In May and June this year, the company had hiked the prices of petrol and diesel in a bid to keep up with the galloping global oil prices. RIL's diesel and petrol currently cost Rs 2.52 and Rs 2.92 more than what the public sector oil companies are selling.

Since the price hike, the company which had a 15 per cent market share is down to less than 1 per cent.

The expected price reduction is expected to even out the difference between the prices of motor spirits sold by RIL and PSUs.

The company does not get any concession on the crude oil, that is available to the national oil companies. RIL's petition seeking compensation of Rs 1,187 crore from the government for selling products below cost during 2005-06, was recently rejected by the government.

This included Rs 103 crore under recovery on petrol and Rs 1,084 crore on diesel.

While RIL retails 342 thousand tonne of petrol and 3,599 thousand tonnes of diesel, the PSUs, Indian Oil, Hindustan Petroleum, Bharat Petroleum and IBP, sell 8,681 thousand tonnes of petrol and 40,308 thousand tonnes of diesel.