IOC may again hike petrol prices from June 1
Source: Hueiyen News Service
New Delhi, May 31 2011:
State-owned Indian Oil Corp, the nation''s largest fuel retailer, today said it may hike petrol price next month as the steep hike of ' 5 per litre of May 15 was not enough to cover the cost of crude oil.
"Even after the hike, we are today losing ' 4.58 per litre.
After including VAT, the desired increase at retail level comes to ' 5.50 a litre," IOC Chairman RS Butola told reporters here.
The desired hike in price has been calculated based on the average crude oil price of the first fortnight of May.
However, from June 1, which will take into account the average of the second half of May when international rates moderated, IOC will lose ' 1.15 per litre.
After including VAT, the desired hike in Delhi would be ' 1.35 a litre.
"We will have to take a view on hiking petrol price soon," he said.
"Government is not compensating us for selling petrol at below international costs since June 2010 when its pricing was freed" .
Butola, however, refused to say when the rates will go up.
"We will have to consider the environment we operate in before taking that call" .
On diesel, he said, the company will from June 1 is expected to lose ' 12.64 per litre.
It currently loses ' 14.66 a litre on diesel.
Similarly, on domestic LPG it is losing ' 380.57 per cylinder and ' 25.85 a litre on PDS kerosene.
An Empowered Group of Ministers (EGoM) headed by Finance Minister Pranab Mukherjee is likely to meet on June 9 to consider raising prices of the three controlled commodities, diesel, domestic LPG and kerosene.