Tuesday, 6 March 2012

Oil Companies mulling a rise in petrol prices by Rs 5 per Liter, also want Diesel hike

Oil marketing companies are drawing plans to raise petrol prices by about 5 per litre and are pushing the government to increase diesel rates to cut their losses.

 Meanwhile, yesterday Indraprastha Gas (IGL), the sole supplier of CNG in Delhi and the neighbouring National Capital Region (NCR), on Monday raised gas prices by 1.70/kg in Delhi and 1.90 per kg in neighbouring areas such as Noida, Greater Noida and Ghaziabad.

This is the second similar increase in barely two months, and on both occasions the company blamed the dwindling domestic supply and rising import of costly LNG. The company no longer gets any supply from Reliance Industries' D6 block, where output has fallen sharply.

The running cost per km will increase by 5 paisa for autos, 9 paisa for cars and 48 paisa for buses, IGL has estimated.

While gas rates have been raise twice in two months, Indian Oil Corp, Bharat Petroleum and Hindustan Petroleum have not revised petrol prices for last three months despite high international prices due to a verbal government directive to hold prices until assembly elections in five states are completed.

Oil ministry officials said oil companies were free to fix retail prices of petrol but they would avoid any steep price hike. "Prices can be raised gradually," one official said.


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