Politics

25-May-2012, 10:07

Oil companies have ruled out any roll back in the prices of petrol. Briefing the media on 24 May 2012, Indian Oil Corporation (IOC) Chairman R.S. Butola said that the decision to hike the prices by Rs 6.28 was taken after all the existing options were exhausted and it was done as a last resort measure in a collective manner. He, however, gave enough hints that if the international crude price softens and the Dollar-Rupee exchange rate eases, the hike may be partially rolled back on 1st of June, when the companies review the prices in a cyclic mode.

Oil Companies revises petrol prices on 1st and 16th of every month on the basis of average international price and exchange rate in the previous fortnight. Butola said, they are hoping that international oil prices will come down and if they come down, they will pass on the benefit to the consumers as was done on 16 November 2012 and 1 December 2012 after the 4 November petrol price hike last year. He said that in the last 50 days, they had lost more than Rs 2400 crore and the under-recovery in the last year was Rs 4890 crore.

Butola informed that a joint letter was addressed to the government for 100% compensation as being done in the cases of Diesel, Kerosene and LPG, but the government had turned down the request as they have also very limited capacity to compensate. He, however thanked the Central Government for providing compensation to the oil companies on Diesel, LPG and Kerosene to the tune of one lakh 38000 crore rupees last year, but after the de-regulation of Petrol prices since June 2010, compensation on this count was ruled out. In reply to a question, he said, the impact on inflation will be very low due to hike in petrol prices. On diesel and LPG pricing, the HPCL Chairman and Managing Director, S. Roy Choudhury, said, he has not heard anything as yet and can't speculate on the subject.

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