Price of Petrol may be rise again as the rupee goes weak against the dollar. Oil companies thinking a Rs 1 per litre increase in price of petrol from January 12, 2012.
“The weakening of the rupee against the dollar has made oil imports costlier. There is an under-recovery of about 85 paise per litre currently. After adding local sales tax, the desired increase in retail prices would be Rs1.02 per litre,” a top executive of a state-owned oil company.
“While oil companies are free to revise the price of petrol, there is an unwritten rule that the final decision vests with the government. An informal nod is required from the petroleum ministry, which is our majority shareholder,” added by him.
Indian Oil Corporation, Hindustan Petroleum Corporation and Bharat Petroleum Corporation — State-owned oil marketing firms — use the fortnightly average of the benchmark oil price and exchange rate to revise retail rates on the 1st and 16th of every month.
