Indian basket of crude oil up at $74

The price of the Indian basket of crude oil continued its upward climb and touched $74 per barrel on Tuesday, according to t he latest data available. This is just 62 cents short of its all-time high price this fiscal year.

While this strengthens the case for a hike in the price of auto fuels "� petrol and diesel "� industry officials say that a hike is unlikely given the volatile political situation.

The gap between the subsidised selling price and the desired selling price is currently being borne by the government-owned oil marketing companies -- Indian Oil Corporation (IOC), Hindustan Petroleum Corporation Ltd (HPCL) and Bharat Petroleum Corporation Ltd (BPCL).

The three companies, together losing over Rs 180 crore a day due to this gap in prices, have been urging the government for a hike. "We are facing working capital constraints. Short-term borrowings have gone up," said an official of an oil marketing company.

Shares of the three companies traded lower at the Bombay Stock Exchange on Wednesday -- IOC closed at Rs 395.15, which is 2.12 per cent lower than Tuesday's last quoted price. HPCL closed 2.37 per cent lower at Rs 240.75 while BPCL closed 1.61 per cent lower at Rs 315.10.

The Indian crude oil basket currently comprises Oman-Dubai sour grade crude oil and Brent dated sweet crude in 58:42 ratio.