Petrol Prices Slashed by Rs 2 a Litre


Petrol Prices Slashed by Rs 2 a Litre

New Delhi, Jun 2 (IANS): In a partial roll-back, oil marketing companies cut petrol prices by Rs.2 a litre with effect from midnight Saturday after crude prices softened in the global market, easing pressure on a government that faced a political backlash for hiking prices 10 days ago.

Indian Oil, Bharat Petroleum and Hindustan Petroleum had raised petrol rates by Rs.6.28 a litre excluding state taxes, the steepest in recent memory, to offset growing losses caused by subsidised rates, rise in the international oil price and a plunging rupee.

India imports nearly 80 percent of its crude requirements at around $160-$170 billion annually. The high cost of imported fuel is partly blamed for the ballooning Indian current-account deficit -- the gap between exports and goods and services imports -- to its widest level in eight years.

According to official sources, the oil companies reduced prices by Rs.1.68 a litre as the international benchmark crude oil fell below $100 per barrel for the first time since October.

The actual increase in prices will vary from state to state depending on the prevailing sales and other taxes.

Given that the rate of sales tax or value added tax (VAT) varies from 15 percent to 33 percent in states, additional sales tax of Rs.0.94 to Rs.2.07 per litre is expected to be added to the decreased base price.

In Delhi, Indian Oil Corp said petrol price would be cut by Rs.2.02 a litre, including state levies.

Currently, petrol costs Rs.73.18 a litre in the capital. From midnight Saturday, its price will fall to Rs.71.16 a litre.

Although opposition parties and allies like Trinamool Congress demanded a full rollback, IOC said the three state-owned oil marketing companies were suffering high level of under-recoveries on the three sensitive petroleum products whose prices are regulated by the government: diesel, kerosene and cooking gas.

"Last revision in selling price of sensitive products was undertaken in June 2011. At these rates, it is estimated that under-recovery on sale of sensitive products during 2012-13 shall be around Rs.96,000 crore. While that of the entire industry is expected to be Rs.181,000 crore," IOC said in a statement.

  

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Comment on this article

  • Dr. J. Lancy D'Souza, Anjelore

    Sun, Jun 03 2012

    We in Mangalore are always the sufferers. Even the Petrol/Diesel is cost is less in other cities rather than Mangalore.
    What's the use of having Refineries and other related by products Companies in Mangalore, it is absolutely of no use.
    Close all those Companies which does not yield any benefits to the Mangalore people. We were more happier before when there were no developments and big companies who loot our own people and destroy our happiness by not offering jobs to Mangaloreans but to other states.
    For eg. see the cost of Fish and Meat - one can buy Gold nowadays but to buy Fish or Meat we have to think hundred times, then this Petrol price......Cycling zindabad.......

    DisAgree Agree Reply Report Abuse

  • Ashish, mangalore

    Sun, Jun 03 2012

    Can the state govt reduce tax on fuel giving benefits to the ppl of the state. We are paying one of the highest taxes in the world

    DisAgree Agree [8] Reply Report Abuse

  • Rakesh shetty, mangalore

    Sun, Jun 03 2012

    REQUIRED NON STOP BANDH, THEN ONLY CENTRAL TEAM WAKE UP OTHERWISE AS USUAL THEY WILL BE IN COMA STAGE ALWAYS.

    INDIAN'S HAVE GIVEN VERY GOOD SHOCK TREATMENT TO CORRUPT UPA TEAM. STILL MORE REQUIRED.

    I WOULD LIKE TO THANKS TO ALL WHO SUPPORTED IN BANDH ACTIVITY.

    ONE MORE TIME WE NEED YOUR SUPPORT FOR NON STOP BANDH ACTIVITY.JAI HO.

    DisAgree [10] Agree [2] Reply Report Abuse

  • R Mallar, Kasaragod/ dubai

    Sun, Jun 03 2012

    Mr. Ismail Perinje,
    Oil companies don't buy the crude on day to day basis. There are contracts with fixed price for a certain period of supply. It is quite possible that oil companies signed this contract when the crude price is at highest (and got some kick back in return for politicians and officials).
    Actually, they wanted to raise the price in March/ April, but central government did not allow that because of the UP election, then budget session etc. So much for the "autonomy" of these oil companies.
    One question, when the oil price is raised by Rs 1 in Delhi, in Karnataka, it raises by Rs 1.25. So by the same logic, when the oil price is reduced by Rs 2/- is the oil price in Karnataka comes down by Rs 2.50?
    Also can any one explain, why the price of oil much lower when crude hit almost $150/- in 2008-2009? Even if you consider depreciation of Rupee, the price of oil should have been Rs 80/- by simple maths!
    The fact is that we the public foot the bill of inefficient public oil companies and greedy politicians.

    DisAgree [2] Agree [7] Reply Report Abuse

  • Sharath, Mangalore

    Sun, Jun 03 2012

    Respected sir...Is it ???? I & my stupid Kidney thought that Crude was available is everybody's house well & borewell and the owners of the each well decided the price based on who is calling for the bandh. Thanks for educating me sir.

    DisAgree [3] Agree [7] Reply Report Abuse

  • ISMAIL.K.PERINJE, PERINJE-YANBU/KSA

    Sun, Jun 03 2012

    Dear Sharath,The price increased when a barrel of crude oil was 125$ plus...Now crude price is @ $ 98.It suppose to be 2.5 to 3 rupees down.FYI every fifteen days Petrol prices are reviewd depending on $ and Crude Oil fluctuation..It is due to Bandh and blah blah..

    DisAgree [3] Agree [10] Reply Report Abuse

  • Omkara Nayak, Bailur/Dubai

    Sun, Jun 03 2012

    OIl compalies must roll beak entire price hike. Their cliam that they are makingh loss is not true. If oil companies are really making loss how come Indian Oil Corporation made a profit of Rs. 12,670 crore in January-March quarter as against the profit of Rs. 3,905 crore in the corresponding period last year.?

    They must rationalise running cost and pass the benefit to consumers during this difficult time.

    DisAgree [1] Agree [11] Reply Report Abuse

  • shuaib, doha qatar

    Sun, Jun 03 2012

    What thanks to BJP,UPA Govt knows every thing whats happend after increase the fuel price thats why UPA Govt increase Rs 7.5 after protesting simply Rs 2.2 cut its very simlpe idia.if BJP Govt is rule this time he also doing same.all politician same all people looting india people mony.

    DisAgree Agree [9] Reply Report Abuse

  • Leslie fernandes, Dutco, Dubai

    Sun, Jun 03 2012

    IT IS GOD'S BLESSING THAT INTERNATIONAL CRUDE PRICES WERE HAMMERED DOWN AT THE SAME TIME AS RUPEE NOSE DIVED.
    OTHERWISE MR. DINESH POOJARY, NONE OF YOUR CELEBRITIES COULD ACHIEVE ANY REDUCTION.
    MOREOVER AVAILABILITY WOULD HAVE BEEN THE GREATER PROBLEM THAN THE PRICE ITSELF.
    PEOPLE WOULD HAVE BEEN FORCED TO BUY AT 20 ODD RUPEES PREMIUM FROM THE MARKET PRICE.
    WE MUST ALL NOW LEARN TO SAVE FUEL MORE THAN EVER BEFORE.
    PLEASE STOP POLITICIZING FUEL PROBLEMS.
    AT TIMES NO HEROES CAN HELP THE CASE.

    DisAgree [1] Agree [11] Reply Report Abuse

  • Sharath, Mangalore

    Sat, Jun 02 2012

    Ismail Perinje ji...2 days back you asked what is the use of all this DRAMA of Bandh. I hope you have the answer now . Any comments ???
    Anyways I am or was not in the favor of Bandhs whcih is nothgin but "Gaayadha mele Bare" for the common man nither I am fool to give this roll back in prices as credit for the parties which called for Bandh. Its just the Congress hater inside me is instigating to give something back to Congress Chamchas.

    DisAgree [11] Agree [7] Reply Report Abuse

  • ISMAIL.K.PERINJE, PERINJE-YANBU/KSA

    Sat, Jun 02 2012

    RADD ANDAA RUDD RUPAYEE ...THIKINA LAABA PANLE,,,,

    DisAgree [9] Agree [12] Reply Report Abuse

  • Dinesh Poojary, Kundapura/Bengaluru

    Sat, Jun 02 2012

    Thanks to BJP led NDA allies for protesting against looting UPA and raising voices for people. With the Bandh on May 31st, UPA has got strong message from NDA. They came to know that irregular price hikes will not be tolerated by people.

    BJP always comes to the rescue of people when they are in trouble. People will remember BJP for ever for this great help.

    Some psuedos were barking that nothing will happen from Bandh called by NDA. Every step by BJP goes towards success.

    I thank Gadkari, Advani, Sushma, Rajnath Singh, Jaitley etc. Also special thanks to our state leaders Eswharappaji, DVS, Yedduyrappaji, Ananth Kumar, Ashoka, Suresh Kumar, Nirani etc for making Bandh huge success.

    Thanks once again for BJP for reducing the price by 2 Rs.

    DisAgree [42] Agree [6] Reply Report Abuse


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