Ummid Assistant

Jamia Millia launches courses on China, Afghanistan

IGNOU launches value education programme for teachers

Welcome Guest! You are here: Home » National

Oil firms forced to hike petrol prices: Petroleum ministry

Friday November 04, 2011 05:44:40 PM, IANS

Related Articles

Fresh petrol price hike of Rs.1.80 per litre

Oil marketing companies Thursday raised petrol prices by Rs.1.80 per litre effective from midnight, just over a month and a half since the last hike - dealing a double blow to consumers already reeling under high »

Angry Mamata summons parliamentary party meet on petrol price

Trinamool MPs want to quit UPA, Mamata says wait

New Delhi: On the defensive after allowing oil marketers to hike petrol price from Friday, the government said state-run fuel retailers were left with no choice given the increasing prices of crude globally and a depreciating rupee.

In a late evening announcement, oil marketing companies (OMCs) increased prices of petrol by Rs.1.80 a litre from Friday.

"The average price of Indian basket of crude oil, which was $85.09 per barrel in 2010-11, has now increased by 30 percent and the average price in the current financial year is around $110 a barrel," said the petroleum ministry in a statement.

"To worsen the situation, the rupee has depreciated from 45 a dollar to over 49 per dollar in recent months. The under-recoveries of OMCs increase by about Rs.8,000 crore annually on account of every Re.1 depreciation," the ministry added.

The United Progressive Alliance (UPA) government came under flak from opposition parties and even its own coalition members.

MPs from the Trinamool Congress -- a major ally of the UPA -- favoured quitting the UPA government to protest the "repeated unilateral decisions" to raise petrol prices, but chief Mamata Banerjee kept the decision pending and requested Prime Minister Manmohan Singh for a meeting after his return from Cannes where he is attending the G20 summit.

The petroleum ministry, however, said the OMCs -- Indian Oil Corp (IOC), Bharat Petroleum Corp (BPCL) and Hindustan Petroleum Corp (HPCL) -- were losing on all fronts as they were incurring under-recoveries of Rs.8.58 per litre on diesel, Rs.25.66 per litre on Kerosene and Rs.260.50 per cylinder on cooking gas. This despite an increase in the selling prices of these fuels on June 25.

Petrol is de-regulated, giving oil marketing firms the freedom to change retail prices, while they still require the government's approval to effect any changes in the prices of diesel, kerosene and cooking gas.

However, even in the case of petrol informal consultations do happen between the OMCs and the government.

"The total under-recovery of oil public sector undertakings for the year is expected to be around Rs.1,32,000 crore compared to Rs.78,190 crore last year," said the ministry.

For the first half of the current fiscal, the under-recoveries of the three retailers stood at Rs.64,900 crore.

Despite the government giving a cash support of Rs.15,000 crore and upstream oil majors like ONGC contributing Rs.21,633 crore, OMCs have declared huge losses for the first half of 2011-12.

"The combined losses of BPCL and HPCL for the first half are more than Rs.12,000 crore and IOCL is also likely to be in red, if no further cash assistance is announced," said the ministry.

"The crisis faced by OMCs is evident by unprecedented level of borrowings of Rs.1,29,989 crore necessitated by need for working capital and dollar requirements for payment of funds for import of crude," it added.
 



 

 

 

 

 

 

 

Bookmark and Share

Home | Top of the Page

 

Comments

Note: By posting your comments here you agree to the terms and conditions of www.ummid.com

Comments powered by DISQUS

 

 

 

Top Stories

Hindu extremists used two Muslims to plant bombs in Malegaon: Report

The National Investigation Agency (NIA) has found in its probe that Hindu extremists linked to RSS used two local Muslim men for planting  »

Bail to Malegaon blast accused: Court directs NIA to submit stand on Nov 04

NIA admits error in probe; Declares Malegaon youths innocent

 

  Most Read

Haj 2011: Over 2.5mn set for once in a lifetime journey of faith

he holy city of Makkah reverberated with chants of “Labbaik Allahumma Labbaik” (O God, here I am answering your call) as nearly three million pilgrims from around the world readied   »

Notice to centre on MPs facing criminal charges

The Supreme Court Friday issued notice to the central government on a petition seeking fast tracking of cases against 162 MPs facing serious criminal charges. The apex court bench headed by Justice P. Sathasivam issued notice on a petition by former chief election commissioner  »

 

  News Pick

Raj Thackeray warns of riots over anti-Marathi remarks

Maharashtra Navnirman Sena chief Raj Thackeray Thursday warned of riots if Congress and Samajwadi Party leaders continued  »

Fresh petrol price hike of Rs.1.80 per litre

Oil marketing companies Thursday raised petrol prices by Rs.1.80 per litre effective from midnight, just over a month and a half since the last hike - dealing a double blow to consumers already reeling under high »

Angry Mamata summons parliamentary party meet on petrol price

Total blockade in parts of Manipur, life badly affected

A three-day 'total blockade' called by Naga leaders has begun in parts of Manipur despite an appeal by union Home Minister P. Chidambaram and Chief Minister Okram Ibobi Singh to Naga groups to suspend their  »

 

Picture of the Day

Nashik District Magistrate P Velrasu greeting AMU Vice Chancellor Prof PK Abdul Aziz and Prof Anwar Jahan Zuberi, Dean Faculty of Social Sciences and former Vice Chancellor, University of Calicut, in Malegaon on October 26, 2011.

(Photo: ummid.com)

 

 
 
 
 
 

RSS  |  Contact us

 

| Quick links

News

 

Subscribe to

Ummid Assistant

 

National

Religion

RSS

Scholarships

About us

International

Culture

Twitter

Government Schemes

Feedback

Regional

History

Facebook

Education

Register

Politics

Opinion

Newsletter

Contact us

Business

Career

     

Education

     

 

 

Ummid.com: Disclaimer | Terms of Use | Advertise with us | Link Exchange

Ummid.com is part of the Awaz Multimedia & Publications providing World News, News Analysis and Feature Articles on Education, Health. Politics, Technology, Sports, Entertainment, Industry etc. The articles or the views displayed on this website are for public information and in no way describe the editorial views. The users are entitled to use this site subject to the terms and conditions mentioned.

© 2010 Awaz Multimedia & Publications. All rights reserved.