Oil’s not well: Petrol price might be up by INR 4/Liter by this weekend!
Just yesterday, we brought you a story on how the Finance Minister not reducing duties on crude oil and other fuels might just force the oil companies to hike prices. It looks like all this will happen sooner than expected with top state owned oil company executives meeting oil minister S Jaipal Reddy today to secure his approval for a petrol price hike.
As petrol is now deregulated and aligned with global crude oil rates, the oil companies have no option but to effect a price increase as crude oil continues to hover above the $100 levels per barrel. The oil companies, which held on to current prices hoping for a excise duty cut from the 2011 union budget now find themselves in a situation where an immediate price increase is imperative for them to stem mounting revenue losses.
The common man, who is already reeling with mounting inflation will suffer the most as any fuel price increase will only exacerbate the already tough inflationary situation. As for the Indian government, it continues to levy a tax of almost INR 14.35/liter of petrol, which if reduced can greatly improve the situation. However, that does not seem to be happening and at this rate, petrol costing INR 70 per liter could soon become a reality.