Price cut expected this weekend
NEW DELHI: State oil
firms may cut petrol rates marginally when they revise gasoline rate on
Saturday because international oil prices have soften and the rupee 
has appreciated, government and industry officials said.
has appreciated, government and industry officials said.
"The government
would like to grab the first opportunity to reduce petrol rates for political
mileage, even if it will be a token cut. Recently, there have been some
positive movements of crude oil and exchange rates, but it is not very
significant," said a senior executive of state oil firm.
The average cost of
crude oil purchases for Indian firms has now gone down by about $2-3 a barrel
while the rupee rose five months high at 52.69 against dollar, giving some room
for petrol price cut, officials said. Indian refiners imports more than 80% of
crude oil they process and pay in dollar.
"We will review
petrol prices today and take a decision regarding its price revision,"
chairman of an oil company said requesting anonymity.
Indian Oil, Bharat
Petroleum and Hindustan Petroleum BSE 0.38 % say they are committed to pass on the entire margin
to the consumers. "But falling international oil prices in one or two days
will not help in reducing rates. It will depend on the fortnightly average of
international petrol price and the exchange rate," another chairman said.
BSE 0.38 % say they are committed to pass on the entire margin
to the consumers. "But falling international oil prices in one or two days
will not help in reducing rates. It will depend on the fortnightly average of
international petrol price and the exchange rate," another chairman said.
Average crude oil
price for Indian basket was $113.64 a barrel in the first fortnight of September
and average exchange rate was Rs 55.47 for a dollar, according to oil
ministry's data keeper, Petroleum Planning & Analysis Cell.
Petrol prices were
frozen since July because of Presidential elections and the monsoon session of
the parliament. The government, which raised diesel
prices by unprecedented Rs 5 a litre from Sept 14, averted a steep hike in
gasoline rates by cutting excise duty
on the fuel by Rs 5.30 a litre. The duty reduction was also aimed at reducing
huge price difference between the two auto fuels that led to dieselization of
the economy. Still diesel is over Rs 21.50 a litre cheaper than petrol, which
is sold at Rs 68.46 per litre in Delhi.
prices by unprecedented Rs 5 a litre from Sept 14, averted a steep hike in
gasoline rates by cutting excise duty
on the fuel by Rs 5.30 a litre. The duty reduction was also aimed at reducing
huge price difference between the two auto fuels that led to dieselization of
the economy. Still diesel is over Rs 21.50 a litre cheaper than petrol, which
is sold at Rs 68.46 per litre in Delhi.
Source: The Economic Times
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