Petrol prices up Rs4 a litre, diesel to cost Rs 2 more
01 Jul 2009
The government today raised prices of petrol by Rs4 a litre and that of diesel by Rs2 per litre in a bid to cut mounting losses of state-run oil marketing companies as global oil prices hover around $70 per barrel. The revised prices are effective from 12 am on Thursday.
Petroleum minister Murli Deora announced the decision after a meeting with prime minister Manmohan Singh. He, however, kept the prices of cooking gas (LPG) and kerosene unchanged at the previous levels.
"The prices of kerosene and cooking gas are not being changed," Deora said, noting that the government will continue to pay subsidies of Rs15.26 per litre and Rs92.96 per cylinder, respectively, on the two fuels.
Indian Oil Corp, Bharat Petroleum Corp and Hindustan Petroleum Corp have seen daily losses on sale of petrol, diesel, domestic LPG and kerosene mount from Rs130 crore to about Rs170 crore as crude oil prices firmed up.
The refining margins on petrol for India's state run oil companies have fallen further from a negative Rs6.08 per litre in the second half of June to Rs6.94 a litre with crude oil prices firming up above $70 a barrel.
On diesel, these companies are losing Rs4.11 a litre now against Rs2.96 previously.
The price of crude oil on the internatuional market shot up above $73 a barrel on Tuesday and is still ruling above $70 a barrel.
State-run oil marketing companies have been losing ever since crude oil prices bounced back from the March lows. These companies have been reporting an average daily loss of about Rs170 crore per day and expects to end the current fiscal with revenue losses of over Rs49,000 crore.