Indian Oil mulls Rs1.35 per litre hike in petrol prices: report

Indian Oil Corporation Ltd (IOC) has announced plans to raise petrol prices by an additional Rs1.35 per litre with effect from 1 June.

Reports quoting IOC sources said the current hike, coming close on the larger Rs5 per litre hike on 15 May, is intended to bridge the shortfall in the previous hike, which, according to IOC, was not enough to cover the price of crude oil and the cost of refining it.

IOC had, on 15 May, raised petrol prices by up to Rs5.29 per litre, against, what it said, "a desired price of Rs10.50 per litre in petrol."

IOC said the current increase in petrol prices is only moderate considering the very high prices of crude oil and the huge debt burden of oil companies, as it has to keep the consumers' interest also into consideration.

Reports quoting IOC sources said the management was considering a hike in petrol prices, but was not in a hurry as the consumers have already been burdened by the recent hike.

IOC said it continued to make a loss of Rs4.50 per every litre of petrol it sold even after the Rs5 per litre hike in prices a fortnight ago. IOC estimates a loss of Rs1,048 crore as a result of selling fuel below cost.