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Petrol price may rise by Re 1 per litre after polls
New Delhi: May 6, 2014 DHNS 3:11 IST
Brace for a hike of as much as Re 1 per litre of petrol and an increase of 50 paise on diesel after the ongoing elections.
Public-sector oil companies, which had effected two consecutive cuts in petrol prices in the run-up to the polls, are suffering losses on its sale. They had moved the oil ministry for hike in prices, but were apparently stopped from doing so in the midst of the general elections. In the last two fortnights, global crude prices have risen by close to $5 per barrel. Taking that into account, a Re 1 hike on a litre of petrol is imminent. The next revision in petrol prices is due on May 15, when the model code of conduct will be lifted.
Industry sources said there would be a hike, but it may come after the results.
They also could not confirm the quantum of the hike. Since 2010, PSU oil retailers have been given the freedom to revise prices on a fortnightly basis, taking into account the average international price movements and the rupee-dollar exchange rate.
Technically, the decision to hike prices lies with the companies, but the government generally does not permit them to exercise this freedom during elections.
On diesel too, the losses have zoomed to about Rs 6.80 per litre over the past fortnight. Companies had put off any hike in diesel prices since elections began on April 7.