Petrol prices are on constant rise in India. The Oil marketing companies in India had the petrol price increased in the last month and according to the latest news, there might again be a rise in petrol price and that could be steep making petrol dearer by Rs.3 per liter increase in price. The petrol price hike may come after the Monsoon session of the Parliament, which means the rise will be during the first week of September. Though no comment on this issue has been passed by the Government but with the deregulation of petrol prices, the oil companies are leaving no opportunities to hike the petrol prices stating that they are doing it according to the international market.
The oil marketing companies in the country are justifying their act of petrol price hike by citing instances of price hike of crude oil in the international market and have stated that they are facing a loss of Rs.3/ litre while selling petrol in the market. One of the board of directors of a Mumbai based Oil Company has stated that it is true that the Indian oil marketing companies are facing losses on petrol, which has become a deregulated product.So the increase in the price is obvious. When asked when will the hike take place and by how much, all he said was that it is only a matter of time now. One of the officials of a leading oil marketing company also stated that the time of the rise in petrol prices will depend on the nod from the government and that might be before the end of the Monsoon Session of Parliament as the government is already entangled into one of the major crisis of the recent time, dubbed by the media as the Coalgate.
One of the board members of oil PSUoil company stated that they are already bearing a loss more than Rs3 per liter of petrol. Since the petrol is a deregulated item in India, the CAG will hold them responsible for the loss as they the companies could not increase the petrol prices. It has been stated by the official that the oil marketing companies will request the government to make oil a regulated item or the oil companies should be given complete freedom to increase the petrol prices when required. During the year 2011-2012, the oil marketing companiesin India had to face under-realization of Rs.4,900crore by selling Petrol in the country.
As stated by the Senior VP & Co-head, Corporate Ratings, ICRA, Mr. K. Ravichandran, the Oil marketing companies in India are facing losses despite the petrol prices has been revised in May, 2012. As in India, petrol price has to do lots with the politics; the government will keep on intervening into the issue.
There is an increase of $10-$113 per barrel of crude oil since the petrol price revisions already had been done in July 2012, so the petrol price will definitely rise soon in India. The Oil Marketing Companies are pressurizing the government to increase the petrol price which may be Rs. 3.litre during the first week of September after the Monsoon session of the Parliament ends.