Petrol prices are likely to be increased by Rs 1.82 a litre this fortnight as a fall in rupee has increased the cost of imported crude oil. This will be the second hike in petrol prices in as many months. Though the pricing of petrol was freed from government controls in June last year,state-owned oil firms 'informally' take directions from the Oil Ministry. It remains to be seen if the government will concede to the demand of oil companies just before the winter session of Parliament. State-owned oil companies Indian Oil,Hindustan Petroleum and Bharat Petroleum last hiked petrol prices by Rs 3.14 a litre on September 16 when the rupee was ruling at about 48 to a US dollar. The local currency has depreciated further and is now trading at over 49 against the American unit. "From today,there are some losses on petrol. To cover them,we may have to increase prices," HPCL Director (Finance) B Mukherjee told reporters here. He said crude oil is hovering at around $108 per barrel in international markets. At current exchange rate,petrol price of Rs 66.84 per litre in Delhi corresponds to about $102 per barrel equivalent of crude oil price. Mukherjee did not say when petrol price would be hiked. "We are in consultations," he said without elaborating. The loss on petrol at present is Rs 1.50 per litre and after including local levies,the desired increase in retail prices is Rs 1.82 per litre. "Let's say,we are toying with the idea," he said. "It may happen. We will see." Congress Justifies Congress today virtually justified the petrol price hike citing high international rates of crude oil and the 80 per cent dependence of the country on imports even as it said that it shared the concern of common man on the issue. "This question should be asked from Petroleum Ministry or the concerned oil companies. After the dismantling of the Advanced Price Mechanism,this issue comes under jurisdiction of oil companies. Oil companies can better answer why and for what reasons,the fuel price hike took place. "As a political party,we are naturally concerned with any thing that hurts common man. But decisions are taken keeping in mind all considerations. We import 80 per cent of crude oil from outside countries. APM was dismantled after debates that saw demands for freeing oil companies to decide fuel price as per international market," party spokesperson Manish Tewari said. He was replying to questions on the likelihood of a rise in petrol prices by Rs 1.82 per litre this fortnight as a fall in rupee has increased the cost of imported crude oil. This will be the second hike in petrol prices in as many months. Though the pricing of petrol was freed from government control in June last year,state-owned oil firms "informally" take directions from the Oil Ministry. It remains to be seen if the government will concede to the demand of oil companies just before the winter session of Parliament. To a question on whether the oil price hike will affect Congress politically,Tewari asked for making a "distinction between government and public sector company"
