Be ready to pay more for petrol or your car may go dry.
The three state-owned oil companies, led by Indian Oil Corporation, warned on Monday that since they had been losing Rs 7.67 on every litre of petrol sold — the loss figure touching Rs 48 crore a day —there could be serious supply disruptions in future if prices are not hiked.
IOC chairman and managing director RS Butola said since prices of crude oil that accounted for 93% of petroleum goods production costs had been witnessing sharp rises in global markets, the desired price hike in the capital was Rs 9.20 a litre — adding the 20% sales tax per litre.
Butola said despite the petrol pricing mechanism having been decontrolled, the government had not allowed the companies to hike prices. “If we don’t earn revenues, we would not be able to buy crude. And if we are unable to buy crude, there will be supply disruptions.”
“The central government earns Rs 14.78 (in excise duty) on every litre of petrol sold and states get between Rs 10 and 20 a litre. But the oil firms are not allowed to earn anything," he said.
Butola said although the government had been told that the only option left was to raise petrol prices, “we haven't so far heard from the government”.