The government on the back of hardening global crude oil prices has asked state-run oil companies to not raise retail fuel prices and bear the fraction of loss to benefit the larger consumer base. As part of the move, OMCs that include HPCL, IOC and BPCL will have to forego upto Rs. 1 per litre on sale of diesel and petrol.
Global crude oil prices are on an upside at 4-year high of over $70 per barrel. Since mid of last year, pricing of fuel oil in India follows dynamic pricing model and is done tracking international rates.
Early this month government declined to bring about any immediate cut in excise duty to cushion consumers against rising crude oil prices which pushed retail prices of diesel to record high and petrol to 4-year high.
In October last year, excise duty cut of Rs. 2 per litre was effected. While some states including Maharashtra, MP, HP and Gujarat also reduced VAT. It is to be noted that among all South Asian nations, retail price of petrol and diesel is the highest in India with a major or almost 50% portion of the retail price going towards taxes.
In the national capital on Wednesday, petrol prices recorded a price of Rs 73.98 per litre, a price last registered in September of 2013 while diesel prices touched the record-high of Rs. 64.96 per litre.
Meanwhile on the sidelines of the International Energy Forum in New Delhi, Surana, MD and CEO of HPCL said that he is not aware of any such directive by the Centre.