Indian Oil Corp not in favour of frequent fuel price revision
09 Jul 2010
State-run oil marketing company Indian Oil Corporation (IOC) said yesterday that there would be no revision in the oil price hike as long as the global crude oil prices did not fluctuate wildly.
'We would not like to revise prices too frequently in case crude oil does not rise too much,' said IOC chairman B.M. Bansal on the sidelines of a seminar.
He added oil retailers were not in favour of frequent price revisions.
On 25 June the government decontrolled prices of petrol and also hiked the rates for diesel, kerosene and cooking gas in a bid to recoup losses amounting to thousands of crores of rupees incurred by the oil marketing companies.
Responding to a question about the mechanism being devised to ensure that domestic auto fuel prices would reflect the changes in global crude oil, Bansal said discussion were in progress on a formula that would take another two - three weeks to finalise.
In a separate interaction with Business Standard newspaper, Bansal said the deregulation of petrol price would not help in improving bottom line as it was dependent on international crude oil and product prices, but it would definitely help in improving the company's cash flow on a day to day basis. He added that earlier underrecoveries were compensated by the upstream companies or the government on a quarterly or yearly basis.