After a petrol price rise of Rs 3.14 per litre in September, the oil marketing companies (OMCs) are preparing for another rise, of Rs 1.82 per litre, because of the continued rupee depreciation and hardening of crude oil prices.
“From today, there are some losses on petrol. To cover these, we may have to increase prices,” Hindustan Petroleum’s director (finance), B Mukherjee, told reporters here. He said crude oil was around $108 per barrel in international markets, while the rupee had depreciated from Rs 46.50 a dollar three months earlier to a little over Rs 49 a dollar now, increasing the cost of oil imports.
Mukherjee said the loss on petrol was currently Rs 1.50 a litre and after including local levies, the desired increase in retail prices was Rs 1.82 a litre. Between the earlier price rise on September 15 and now, the rupee has depreciated by around two per cent.
“We are in discussion with other oil companies on raising prices. Let’s say, we are toying with the idea,” he said, refusing to say when fuel prices would be raised.
Besides petrol, the three OMCs are losing Rs 319 crore per day on selling diesel, domestic cooking gas (LPG) and kerosene below cost. They lose Rs 8.58 per litre on diesel, Rs 25.66 per litre on kerosene sold through the public distribution system (PDS) and Rs 260.50 per 14.2-kg LPG cylinder supplied to homes for cooking.
At the current rate, the industry is projected to lose Rs 121,459 crore in revenue on sale of diesel, domestic LPG and kerosene for the whole financial year.