The petrol prices in the four metros have reached Rs. 63.37 in Delhi, Rs. 67.71 in Kolkata, Rs 68.33 in Bombay and Rs. 67.22 in Chennai as on 15th May 2011. Bharat Petroleum Corporation Limited (BPCL) on Saturday hiked price by Rs. 4.99 a litre and Hindustan Petroleum Corporation Limited (HPCL) by Rs. 5.01. Despite a steep hike in petrol prices, the OMCs said that Saturday"s increase was only 50 per cent of the required increase.
A senior executive of HPCL said, “The full price hike has not been passed on to consumers. We were incurring a loss of Rs. 10.50 on a litre of petrol."
A Meeting of Empowered Group of Ministers (EGoM) to decide on the fuel price hike which was scheduled last week had been postponed and the date is not yet fixed. However, after the petrol price increase, the increase in diesel and gas prices are also expected as OMCs are selling diesel at a loss of Rs. 16.17 a litre and LPG at a loss of Rs. 329.73 per 14.2-kg cylinder.
Inflation which is ruling at 8.98 per cent is expected to increase further driven by fuel price hike, since diesel has a weightage of 4.6702 per cent in the wholesale price index and petrol has a weight of 1.09015 per cent. Thus the economic growth, which has already been downgraded by the government, is bound to suffer in the current scenario.