Save money everyone Petrol prices hikes more 5.rs
Tighten your purses because petrol is likely to get dearer by Rs.5. According to sources the oil ministry has agreed to the demands of Oil Marketing Firms (OMCs) and the price hike will be anytime on Friday.
Incidentally, the oil ministry may actually allow OMCs to announce the hike.
According to sources, the government gave OMCs the okay to increase prices just after the monsoon session of the Parliament, which is slated to end on Friday. While there is no confirmation on the quantum of the hike, sources said after number crunching OMCs indicated an increase in the range of Rs.4 to Rs.5 per litre.
Sources in the oil ministry said the PMO and finance ministry have also backed the hike and a cabinet note on the same will be circulated soon.
The government may also push for a hike in other petroleum products including diesel and LPG. However, there was no information on the timing of the hike of products other than petrol.
Oil firms are currently losing Rs.19.26 a litre on diesel and Rs.347 per cylinder of domestic cooking gas. Prices of both these products have not been increased since June last year, although the cost of production has jumped nearly 28 per cent.
State-owned fuel retailers are losing Rs.560 crore per day on sale of diesel and cooking fuel, and are forced to resort to short-term borrowings to meet funds needed for importing crude oil (raw material).
Borrowings of the three fuel retailers have shot up to Rs.1,57,617 crore at end of June from Rs.1,28,272 crore as on March 31.
Besides, they are losing close to Rs.5 per litre on petrol, a fuel that was decontrolled in June 2010 but rates of which haven’t moved in tandem with cost.
“Finance ministry says it is not left with funds to subsidise oil companies. Oil companies are jewels of India. They need to be saved at all cost. Governments come and go, but oil companies will be required to fuel the country,” the official said.
At current rate, the three firms are projected to lose Rs.1,92,951 crore in revenues in the financial year ending March 31, 2012.
