The state-run oil refining and marketing companies warned that if they were not allowed to hike petrol prices immediately by Rs 1.37 a litre, they would need a Rs 3 a litre price hike next week, given the surge in global crude prices.
Indian Oil, HPL and BPL projected a Rs 180,000-crore combined loss for this fiscal — more than India’s defence budget — if prices of diesel, LPG and kerosene were not raised immediately.
While petrol prices are officially deregulated and are supposed to follow the global price trends, the government informally controls the prices.
RS Butola, CMD of IOC, the biggest oil company which posted its highest ever quarterly loss of Rs 22,451 crore on Thursday, said, “IOC is suffering a daily loss of Rs 20 crore on petrol sales.”
He said, “We have already told the government to bring petrol back under the regulated regime if price hike is not possible.”