IOC hikes petrol prices by Rs. 2.96 a litre

PTI

New Delhi, 15 December 2010: A day after Bharat Petroleum Corporation (BPCL) raised petrol prices, state-run Indian Oil Corporation (IOC), the nation’s largest fuel retailer, on Wednesday hiked petrol prices by Rs. 2.96 per litre effective midnight.

The biggest hike in six months follows international crude oil prices climbing to $90 per barrel, but it is still short of the desired Rs. 4.17 a litre increase that would have made domestic prices on par with market rates.

BPCL had on Tuesday announced a hike of Rs. 2.95 per litre in petrol prices in Delhi, with effect from Wednesday. Hindustan Petroleum Corporation (HPCL), the third state fuel retailer, also hiked petrol prices by Rs. 2.94 per litre effective midnight tonight.

“Petrol at IOC pumps in Delhi will cost Rs. 55.87 per litre from midnight tonight,” a company official said.

The fuel at HPCL pumps would be sold at Rs. 55.85 per litre while it is priced at Rs. 55.86 a litre at the BPCL pumps.

 

 

The state-retailers are deliberately adopting marginally different rates and effecting hikes at different times to avoid being accused of acting as a cartel in the free market.

The government had in June this year freed petrol prices, but the state firms, who control 98 per cent of the retail market, continue to informally consult the Oil Ministry before revising prices.

Sources said a Rs. 2 per litre hike in diesel prices is on the agenda of an Empowered Group of Minister headed by Finance Minister Pranab Mukherjee when it meets on December 22.

The oil firms are losing Rs. 5.40 per litre on selling diesel below import cost, sources said.

Petrol in Mumbai will cost Rs. 60.46 a litre at IOC pumps as against Rs. 57.35 a litre currently. In Kolkata, the hike will be Rs. 3.09 per litre to Rs. 59.90 while in Chennai the price have been hiked to Rs. 60.65 per litre from Rs. 57.44.

The oil firms had on June 26 raised petrol price by Rs. 3.50 a litre, coinciding with the government decision to make the rates market determined.