Chandigarh, November 26
As the crude oil prices continue to crash, the public sector oil marketing companies have begun the exercise to reduce the prices of its premium fuel products.
While Indian Oil Corporation (IOC) today announced a cut of Re 1 per litre in its premium fuel (Xtra Premium) and 25 paise per litre on premium diesel, Hindustan Petroleum (HPCL) has announced a cut of Rs 10 per litre on 2T and other lubricants.
On the cards next week is a reduction of almost Rs 15 per cylinder in the price of commercial LPG. Since the price of commercial LPG is fixed on the first of each month, by matching it with the price of LPG in the global market, this price is expected to be revised next week.
Even as all three oil marketing companies have tried to persuade the government not to reduce the retail prices of normal fuel and diesel in the wake of their huge under-recoveries, they have now got into action to reduce the price of products that are not a part of administered price mechanism. With the Indian crude oil basket having fallen to $48 a barrel now, the oil marketing companies have decided a downward revision.
Officials in IOC claim that by reducing the prices of premium fuels, they have brought down the premium between the normal fuel and the premium fuel. “The difference between the normal petrol (MS) and premium petrol was Rs 4 per litre, which has now been brought down to Rs 3 per litre, while the difference in diesel has been brought down by 25 paise per litre,” he said.
With IOC reducing its retail price on premium fuels today, other oil marketing companies are expected to follow suit. It may be noted that after the premium fuel prices were hiked in June this year, the oil marketing companies had hiked the rate of premium petrol by Rs 6 per litre and of diesel by Rs 3.50- 4.25 per litre. This move had led to a dip of 20 per cent in the sales of these premium fuels. Though some oil marketing companies had later forced their retailers to pick up 50 per cent of their stocks as premium fuels, it failed to increase their sales.
