With petroleum companies batting for a decontrol of diesel prices, a reality check of the petrol price since it was decontrolled in June 2010 shows that since then the country has seen a 31% rise in seeing prices variations for 26 times. Though many a times the government has not allowed its oil marketing companies to increase price of petrol, oil marketing companies are officially free to set the price.
While the government is also mulling over phased decontrol of diesel prices on the lines of Kelkar Committee report, which suggested a gradual phase out of subsidy on diesel pricing and LPG, a relook at the decontrolled petrol price show that in the new pricing regime the national capital region itself has seen a hike of 31.4% from Rs 52.43 per litre to Rs 67.56 till now, seeing price variations for 26 times, out of which 19 of them were price increases.
The government is now considering diesel and LPG price hike as the marketing companies are facing a huge revenue loss of more than Rs 1,60,000 crore. The panel had recommended a hike of Rs 4 per litre in diesel, Rs 2 per litre on Kerosine and Rs 50 per cylinder on LPG, suggesting a hike on a monthly basis until the revenue losses are covered. Union minister for petroleum and natural gas M Veerappa Moily said today that the government is actively considering a hike in price of diesel prices which is currently being sold at a revenue loss of Rs 9.60 a litre.
Since November, oil companies were looking for a revision even in petrol rates, due to a rupee dollar imbalance. However, it is believed that the hike did not happen due to political pressure and assembly elections in various states.
On Tuesday, Delhi saw a 32 paise hike in petrol prices, the increase in rates was due to withdrawal of VAT exemption in June last year, the first hike since November 2012. At the same time, prices came down or remained static only seven times during the time period. The highest raise was in May 2012 by Rs 7.5 per litre.
“When you consider the number of hikes quantitatively, one should also consider the rise in international crude prices in 2010. It was around $60-70 range, while touching almost $115 now. The reason for deregulation was mainly because of the losses suffered by the oil marketing companies, but the under recovery from diesel and LPG also had a huge impact on them,” said Bhavesh Chauhan of Angel Broking.
As far as raising the cap of subsidised cooking gas cylinders from six to nine a year, Moily hinted that a decision will be taken once assembly elections are over in three states. In Delhi, prices for diesel saw a change in last October to Rs 47.15 per litre. On the other hand, subsidized LPG costs for per 14.2-kg cylinder is now standing at Rs 410.50, while nonsubsidised domestic price stands at Rs 895.50.
Petrol Prices
Delhi 67.56
Kolkata 75.03
Mumbai 74.32
Chennai 70.58
| Month | Delhi | Kilkata | Mumbai | Chennai |
| November 16, 2012 | 67.24 | 74.55 | 73.53 | 70.57 |
| October 27, 2012 | 68.19 | 75.74 | 74.73 | 71.77 |
| October 09, 2012 | 67.9 | 75.44 | 74.43 | 71.48 |
| August 01, 2012 | 68.46 | 76.14 | 75.14 | 72.19 |
| July 25, 2012 | 68.48 | 76.13 | 75.14 | 72.19 |
| July 24, 2012 | 68.48 | 73.61 | 74.23 | 73.16 |
| June 29, 2012 | 67.78 | 72.74 | 73.35 | 72.27 |
| June 18, 2012 | 70.24 | 75.81 | 76.45 | 75.4 |
| June 03, 2012 | 71.16 | 75.81 | 76.45 | 75.4 |
| May 24, 2012 | 73.18 | 77.88 | 78.57 | 77.53 |
| December 01, 2011 | 65.64 | 70.03 | 70.66 | 69.55 |
| November 16, 2011 | 66.42 | 70.84 | 71.47 | 70.38 |
| November 04, 2011 | 68.64 | 73.15 | 73.81 | 72.73 |
| September 16, 2011 | 66.84 | 71.28 | 71.91 | 70.82 |
| July 01, 2011 | 63.7 | 68.01 | 68.62 | 67.5 |
| May 15, 2011 | 63.37 | 67.71 | 68.33 | 67.22 |
| March 02, 2011 | 58.37 | 62.5 | 63.08 | 61.93 |
| January 16, 2011 | 58.37 | 62.5 | 63.08 | 63.36 |
| December 16, 2010 | 55.87 | 59.9 | 60.46 | 60.65 |
| November 09, 2010 | 52.91 | 56.81 | 57.35 | 57.44 |
| November 02, 2010 | 52.59 | 56.47 | 57.01 | 57.09 |
| October 17, 2010 | 52.59 | 56.44 | 57.01 | 57.09 |
| September 21, 2010 | 51.83 | 55.69 | 56.25 | 56.31 |
| September 08, 2010 | 51.56 | 55.4 | 55.97 | 56.02 |
| June 26, 2010 | 51.43 | 55.32 | 55.88 | 55.92 |
| *in Rs per litre | ||||
| Source: IOCL website |