OMCs denies to reduce petrol prices

Posted By: Religare
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OMCs denies to reduce petrol prices
Despite the decline in the international prices, the state refiners Indian Oil, Hindustan Petroleum and Bharat Petroleum have denied to cut petrol prices. They are currently making a profit of 10 paise per litre on the fuel.

As per the officials, the refiners could consider reducing the petrol prices only if the decline in international prices remains sustainable.

Therefore, at the time when these refiners are trying their best to recover from the loss of Rs. 2,400 crore that they incurred last year, they are very much cautious about taking risks or chances.

The international crude prices which prevailed at $113.9 per barrel against $106.6 per barrel in the first fortnight of August is one of the decisive factors for domestic product prices. Additionally, import and export-parity prices of individual products also play a vital role in determining the product prices.

View: The oil marketing companies are making a small profit as of now, and they still have to recover last year's loss of Rs 2,400 crore. Plus international prices are not stable and hence one can never be sure which the prices will start increasing. 

Read more about: oil and gas, bse, nse, crude
Story first published: Wednesday, August 17, 2011, 13:30 [IST]
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