Oil Marketing Companies (OMCs) have raised petrol price by Rs 1.69 per litre and diesel price by 50 paise a litre, excluding state levies. The OMCs attributed the price rise to the Iraq crisis which has pushed crude oil price up $4 per barrel in the past two weeks alone. “Also, the Rupee-Dollar exchange rate has deteriorated. The combined impact of both these factors has warranted the increase,”
Despite the diesel price hike — second since the new government took charge last month — under-recovery on retail diesel sales stand at Rs 3.4 per litre. In addition, IOC continues to suffer under-recovery of Rs 33 a litre on Kerosene and Rs 449 on every Liquified Petroleum Gas (LPG) cylinder.
Total under-recoveries for the three OMCs — IOC, Bharat petroleum (BPCL) and Hindustan Petroleum (HPCL) — are likely to stand at Rs 1,07,850 crore.
Posted Ritika Securities
