Oil companies hint at a cut in petrol prices next month

PTI

New Delhi, 24 May 2012: A day after raising petrol price by a massive Rs 7.54 a litre, state-owned oil companies today indicated that rates may be cut at the next revision cycle due early next month on account of softening in global oil prices.

 

"The current trend (in international prices) indicates that prices (of petrol) can come down," IOC Chairman R S Butola told reporters here.

 

Oil companies revises petrol prices on 1st and 16th of every month on the basis on average international price and exchange rate in the previous fortnight.

 

"We are hoping international oil prices will come down. If they come down, we will pass on the benefit as we had done on November 16 and December 1 after the November 4 petrol price hike," he said.

 

"We are committed to passing on any benefit we accrue as a result of prices coming down or rupee appreciating against dollar," he added.

 

When asked if there will be any immediate rollback, Butola said, "There is no proposal before us. There is no situation (for rollback). No section (of our stakeholders) has asked us to reduce prices."

 

Hindustan Petroleum Corp Chairman and Managing Director S Roy Chowdhry said, "Nobody has instructed us to do so".