statesman news service
NEW DELHI, 13 JULY: With no respite in crude oil prices and the fall of the Indian rupee in the international market, oil marketing companies are all set to increase diesel and petrol price next week ‘provided’ the petroleum ministry gives it the go-ahead.
The oil companies would review the prices of petroleum products and take a decision on increasing the prices. While the oil companies have decided to increase petrol and diesel prices, they have also sought the government&’s nod to marginally hike the price of domestic LPG and kerosene oil.
There are two major concern for the oil companies, one the Indian rupee has depreciated almost 10 % in the past two months and crude oil prices are also increasing. In the past few weeks, crude oil prices have shown an increase of US $5 a barrel.
Given the situation, OMCs said they have no choice but to hike the prices. The borrowing of oil companies, which was in the range of Rs 1.5 lakh crore, would go up. The Rupee depreciation has put further strain on the working capital of oil companies. In the international market crude oil which was Rs 5867 per barrel on June 24 has touched Rs 6380 a barrel, an increase of Rs 513 a barrel.
The last time oil companies had increased petrol price by Rs two a litre on 15 June. Before this it had increased petrol price by 75 paise a litre on 1 June. “People have to understand the increase is not in our hands, and is influenced by external factors including the crude price in the international market and Rupee value…No company can run on losses….,” an oil company official said.