Petrol boils! IOC considering Rs 1.35/ litre hike
Petrol prices could well be on the boil yet again. Indian Oil Corporation is mulling a petrol price hike according to the Financial Express. Rising crude oil prices have been the driving force behind the price hikes of the past. Only, recently, petrol prices went up by Rs 5 per litre.
The management at IOC is considering a price hike but is not in a hurry to impose the hike as the consumers have already been burdened by th recent hike. Still, with crude oil prices rising, IOC is making a loss of Rs 4.50 per litre even after increasing the price of petrol by Rs 5 per litre a fortnight ago. IOC has made a loss of Rs 1048 Crore as a result of selling fuel below cost.
“We are continuing to incur losses by selling petrol below cost prices. We are constantly monitoring the global crude oil price. We will take the decision (to hike the petrol price) at an appropriate time,” IOC Chairman R S Butoal told reporters.
According to the IOC Chairman, the company is waiting for the right time for a moderate price rise however, a hike in prices of petrol seems imminent. When asked why the company is not raising prices now given the government does not regulate the prices any more, the IOC official said, “there is already a steep hike of Rs 5 per litre. Let the market adjust to this hike. We cannot take decision in a mechanical way.”
According to CNNIBN, diesel and LPG prices might as well go up this time around. Diesel prices are thought to go up by Rs 4 and consumers might have to shell out Rs 25 more for an LPG cylinder. This means, inflation is here to stay as consumers will have to bear with ever increasing prices.