Petrol prices to reduce by November 16

Business

oi-Monika

By Monika Nihalani

Published: Wednesday, November 9, 2011, 12:00 [IST]

RS Butolo, the chairman of Indian Oil Corporation (IOC), India's largest oil and gas company, told NDTV that oil companies will cut prices by November 16 as long as the global trend of falling gasoline prices continues.

State-owned oil companies have raised the price of fuel by a total of 10 times after the government deregulated price of petrol in June last year. With this the prices have been appreciated more than Rs 15 per litre.

Every hike in petrol price comes with public protests, as it is making it difficult day by day for a common man to cope up with price increase.

On the flip side, the weakening rupee against the dollar is adding pressure on the Oil Marketing Companies (OMCs) which are mounted with the losses on their balance sheets.

The global gasoline prices have been fallen from $125 to $115 per barrel but rupee volatility is making OMCs difficult to pass the benefit of lower prices to consumers, the IOC chairman said.

Petrol prices in India are high due to high taxes levied on the fuel, state governments want prices to be cut but not in favour to slash taxes.

Latest hike in the price of petrol of Rs 1.80 per litre has provoked Mamata Banerjee's Trinamool Congress and had threatened to pull out from the UPA government, if there was another hike in fuel prices.

Mr. Butolo added, “the state-owned oil companies had no directive from the government that thre should be no more petrol price hikes.”

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