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After raising the red flag to an increase in domestic natural gas prices, the Election Commission on Wednesday stated oil marketing companies could revise petrol prices without seeking the panel’s approval.
However, if the monthly 50 paise a litre increase of diesel prices needs to be put on hold, the government should take permission from the poll panel. This comes at a time when the petrol prices are likely to be cut by over Rs 1 a litre early next week, as appreciation in value of rupee against the US dollar and fall in global oil rates has made imports cheaper. Since June 2010, oil marketing companies have the right to revise petrol prices based on international market, while diesel prices had gone for a phase-wise decontrol from January last year.
State-owned oil firms are due to announce revised petrol and diesel prices on March 31. “Rupee has appreciated to Rs 60.50 to a US dollar from Rs 61.44 and simultaneously international gasoline rates have dipped from $118.09 per barrel to $115.73. The twin factors will lead to a reduction in petrol price on Monday,” a source with direct knowledge of the development said. Last month, election commissioner H S Brahma had stated that government could not discontinue the monthly increases in diesel prices, as it would tantamount to populism.
Business Standard had reported that there is pressure mounting on Petroleum Minister M Veerappa Moily to put the diesel decontrol on hold until the elections get over. For that, the matter has to be taken up before the Cabinet and also the poll panel.
“If they (oil companies) are going (for petrol price revision) under the market driven force, so they are welcome. I mean there are a certain area, where market takes the precedence,” Brahma told reporters on sidelines of a CII event here.
“Let them do their job properly. Thats all. We are here only to ensure that everybody does their job. The Election Commission will do their job. RBI will do their job. Petroleum ministry and oil companies will do their job. Decision is very simple and clear,” he added. Petrol and diesel prices were last revised on March 1 when rates where hiked by 60 paisa and 50 paisa, respectively.
Petrol currently costs Rs 73.16 a litre in Delhi, while diesel is priced at Rs 55.48 a litre. Since January 2013, diesel rates have risen by a cumulative Rs 8.33.
