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Petroleum industry

Bharat Petroleum Corp Hikes Petrol Prices, State-Oil Companies to Follow

Strategic Insights

— 1 min read

Bharat Petroleum Corp has increased petrol prices by Rs 2.96 a liter, effective midnight, following international crude oil prices hitting $90 per barrel. The oil ministry has given the three state-run oil companies - Bharat Petroleum, Indian Oil Corp, and Hindustan Petroleum Corp - permission to raise petrol prices. The move aims to prevent the companies from being accused of acting as a cartel, as they are taking turns to increase prices.

Key Takeaways:

  • Bharat Petroleum Corp has increased petrol prices by Rs 2.96 a liter, effective midnight, with the price in Delhi now at Rs 55.87 per liter.
  • Indian Oil Corp and Hindustan Petroleum Corp will follow suit by an equal measure tomorrow.
  • State-run oil companies are taking turns to increase prices to avoid accusations of cartelization.
  • The companies are losing about Rs 4.17 per liter on selling petrol below import cost.
  • A Rs 2 per liter hike in diesel prices is on the agenda of an Empowered Group of Minister headed by Finance Minister Pranab Mukherjee when it meets on December 22.
  • Oil firms are losing Rs 5.40 per liter on selling diesel below import cost.
  • Despite decontrol of petrol prices in June, state-run retailers continue to informally consult the oil ministry before revising rates.
  • The basket of crude oil India buys averaged USD 88.47 per barrel in December, as against about USD 79 a barrel at the time of the last hike in petrol price on November 9.
  • Oil retailers are likely to end the fiscal with close to Rs 67,000 crore revenue loss on sale of diesel, domestic LPG, and kerosene below cost.

Statistics:

  • Petrol prices have gone up by Rs 4.44 a liter since June 26 when petrol price was deregulated.
  • Crude oil averaged USD 88.47 per barrel in December, up from USD 79 a barrel at the time of the last hike in petrol price.
  • Oil retailers lose Rs 272.19 on the sale of every 14.2-kg LPG cylinder and Rs 17.72 per liter of kerosene.
  • The oil companies are losing about Rs 4.17 per liter on selling petrol below import cost.
  • Oil firms are losing Rs 5.40 per liter on selling diesel below import cost.

Sources:

  • HT Media Ltd
  • Syndicate.info
  • Albawaba.com
  • Bharat Petroleum Corp
  • Indian Oil Corp
  • Hindustan Petroleum Corp
  • Ministry of Petroleum and Natural Gas
  • Finance Ministry

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