Petrol prices hikes by Rs 2.96 per litre from midnight

NEW DELHI: Bharat Petroleum Corporation Limted has hiked petrol prices by Rs 2.96 per litre. The hike will come into effect from midnight. The move follows international crude oil prices touching the $90 per barrel mark.

Retailer Indian Oil Corporation is also likely to announce a hike. IOC and other state retailers Hindustan Petroleum (HPCL) and BPCL are losing Rs 4.17 per litre on selling petrol.

A hike in diesel rates is likely to be considered by an Empowered Group of Ministers headed by Pranab Mukherjee on December 22.

The basket of crude oil India buys was at $89.34 per barrel on Monday. It has averaged $88.47 per barrel in December as against about $79 a barrel at the time of last hike in petrol price on November 9.

Even though petrol price was freed from the government control in June, state-run retailers informally consult the oil ministry before revising domestic rates.

They had on November 9 raised petrol price by Rs 0.32 per litre to Rs 52.91 a litre in Delhi even through the desired increase was about Rs 1.1 per litre.

On diesel, the three firms are losing about Rs 5 a litre. A fuel price hike was planned after the winter session of Parliament ended on December 13. If prices are not revised, IOC, BPCL and HPCL are likely to end the fiscal with close to Rs 67,000 crore revenue loss on sale of diesel, domestic LPG and kerosene below cost.

The oil retailers lose Rs 272.19 on the sale of every 14.2-kg LPG cylinder and Rs 17.72 per litre of kerosene.(Agencies)

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