Public sector oil units to keep petrol prices uniform; review rates every month
14 Jul 2010
State run oil retailers will stick to a uniform price for petrol and review the rates once every month, to reflect the changes in the price of crude oil and in tune with the liberalised fuel pricing policy.
The three oil PSUs - Indian Oil Corp, Bharat Petroleum Corp and Hindustan Petroleum Corp - also would charge uniform prices for petrol, SV Narasimhan, head of finance at India Oil Corp, said today.
The government, last month, freed petrol from price controls and raised prices of diesel and domestic cooking gas in a bid to make operations profitable for state-run fuel retailers. PSU oil companies sell all fuels at a price below the cost of production.
While there will not be an immediate increase in petrol prices, state-owned oil firms have agreed to review prices once every month in tune with the rise or fall of crude prices.
The government has already raised petrol prices by Rs3.50 a litre (in Delhi), but has left the modalities of further price adjustments to the industry.
Petroleum minister Murli Deora had, however, said that the government would intervene in case of high volatility in the international crude prices, to safeguard the interest of consumers.
The three oil PSUs are currently in cunsultation on the modalities and the frequency at which prices will be revised as also the need to have uniform rate.
IOC, Bharat Petroleum and Hindustan Petroleum will now function as an 'informal' cartel.
