Petrol becomes cheaper by Rs 2.40 per litre
Petrol becomes cheaper by Rs 2.40 per litre
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However the widely expected increase in diesel prices has been deferred as the government is concerned about protests in the crucial budget session of Parliament, officials said.
Petrol prices excluding state taxes have been reduced by Rs 2 a litre across the country. Retail prices would fall up to Rs 2.62 in cities like Bangalore and Hyderabad, where taxes are high.
IOC, BPCLBSE 0.72 % and HPCLBSE -0.13 % have decided to pass to the consumers the entire benefit of the $5 per barrel fall in international crude oil. Company executives said oil firms had suffered a revenue loss of Rs 1,130 crore from petrol sales in 2012-13.
"We (state oil companies) have acted as responsible corporate citizens. We recently raised petrol rates because of soaring international prices. Now, when prices have subsided, we must pass on the benefits instead of recovering our past losses," IOCBSE 2.11 % chairman RS Butola told ET.
IOC incurred Rs 500 crore revenue losses in the current fiscal year because it could not raise petrol rates in tandem with its market prices due to political reasons. Oil companies are free to fix petrol rates since fuel pricing was deregulated in June 2010. Industry executives said the oil ministry, worried about the political fallout while Parliament is in session, told oil companies to wait for some time.
"Diesel price is expected to be raised by about 50 paise per litre soon after the Budget session is over," one official said requesting anonymity. The Cabinet has empowered oil companies to raise diesel rates in small dozes every month till all of the 11 per litre losses are eliminated, but state oil firms take tacit permission of the oil ministry before taking fuel-pricing decisions.
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