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Petrol Price to Be Increased In India if Crude Oil Price Continue to Maintain Current Levels

  • Executives from three major state owned oil companies in India; IOC – Indian Oil Corporation, HPCL – Hindustan Petroleum Corporation Limited and BPCL – Bharat Petroleum Corporation Limited have indicated that they will be increasing prices of petrol in India by Rs 3 to Rs 3.30 in the near future, if international crude oil prices continue to hover around current levels of $115 - $118.
  • Oil companies in India are currently selling petrol to consumers at a loss of Rs 3.30 per liter. Petrol priced have not been increased in the past two months, even thought international crude oil prices have increased to a level which is close to its six month high figure. Rumors suggest that the government is waiting for next month's UP elections, after which oil companies will be given a green signal to increase petrol prices.Mr R S Butola, MD & Chairman, IOC, said, "I am not linking the price increase with any event. It could be any time. If the prices remain high, we will have no recourse but to increase prices. The company can't sustain for long. We will be forced to raise petrol prices if (international) prices prevail at this level."

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