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EC allows revising petrol prices, likely cut by Rs.1/litre

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IANS New Delhi
Last Updated : Mar 26 2014 | 7:55 PM IST

With state-run oil marketing companies free to fix petrol prices every month, Election Commisioner H.S. Brahma said Wednesday that OMCs can continue to revise petrol prices in line with the government's authorisation of 2010.

"Oil companies can revise petrol prices without coming to the Election Commission," Brahma said here.

The Election Commission's (EC) had Monday asked the government to defer notifying the new, and likely doubled, price of natural gas produced by companies till after the general elections, thereby postponing the operationalising of the government's decision taken earlier.

OMCs are due to announce revised petrol and diesel prices on March 31.

Meanwhile an OMC source told IANS that petrol prices are likely to be cut by around one rupee per litre owing to a combination of the rupee's appreciation and a fall in global oil prices.

The Indian basket crude oil price on the last trading day Tuesday was $104.91, or Rs.6346.01, per barrel, at the exchange rate Rs.60.49 to the US dollar.

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The government had in January 2013 authorised OMCs to hike diesel prices by 40-50 paise a litre every month till such time that under-recoveries, or losses, on selling the fuel below cost, are wiped out.

Fuel prices were last revised on March 1 when petrol was increased by 60 paise a litre, while diesel was raised by 50 paise.

Regarding the election model code of conduct Brahma, had clarified earlier this month that the government cannot discontinue the monthly increases in diesel prices as it would tantamount to a violation.

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First Published: Mar 26 2014 | 7:50 PM IST

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