Oil PSUs defer petrol price hike, demand more from govt | business | Hindustan Times
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Oil PSUs defer petrol price hike, demand more from govt

The three state-owned oil companies met on Saturday to decide on the next round of petrol price hike, but decided to defer the decision despite the loss on domestic sales of petrol climbing to Rs 7.65 a litre. HT reports.

business Updated: Apr 01, 2012 01:46 IST
HT Correspondent

The three state-owned oil companies met on Saturday to decide on the next round of petrol price hike, but decided to defer the decision despite the loss on domestic sales of petrol climbing to Rs 7.65 a litre. But there is not respite for airlines, as jet fuel has become costlier.

The oil firms — Indian Oil, Hindustan Petroleum and Bharat Petroleum — said they might, however, arrive at a decision on Sunday after the government clearly states its position on the compensation for passing on the subsidy component to the consumer and a possible cut in state taxes and excise duty.

“We are losing about Rs 7.65 a litre and after adding a 20% sales tax in Delhi, the price hike should be Rs 9.18 a litre. We have told the government that if these demands are not accepted, the oil companies will have no option but to raise petrol prices,” an oil company official said.

He said the companies asked the Centre to make up for the losses incurred by them while keeping petrol prices lower than the actual cost and demanded a cut in the Rs 14.35 a litre excise duty. “We haven't so far heard from the government and even though today is the day we were to revise prices, we have decided to wait for one more day."

The price of aviation turbine fuel, or jet fuel, in Delhi was hiked by Rs 1,850.96 a kilolitre — equal to 1,000 litre — to Rs 67,800.30 a kilolitre from midnight Saturday, IOC said.