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A week before the country goes for elections, public sector oil companies reduced petrol prices by 75 paise a litre (excluding state levies) effective April 1. At the retail-end in Delhi, the decrease will be of 90 paise. Diesel prices, however, remained untouched, as the Election Commission’s approval was awaited.

In a statement issued here, IndianOil Corporation said in 2013, the Government had allowed oil marketing companies to increase the retail price of diesel within a small range every month until further orders. Accordingly, since then, retail diesel prices have been revised every month.

Under recovery

Currently, the under-recovery (revenue loss) on retail diesel is INR 5.93 a litre, which is below ₹6 a litre – the interim subsidy cap, recommended by the Kirit Parikh Expert Group in 2013. Hence, the issue of monthly price increase is under the consideration of the Government and the matter has been referred to the Election Commission.

Last revision

The price of petrol was last revised upwards by INR 0.60 a litre (excluding state levies) on March 1. “Since the last price change, there is a declining trend in international prices of petrol and the rupee-dollar exchange rate has also been strengthening. The combined impact of both these factors has resulted in reduction in the price of petrol,” the statement said. The movement of prices in international oil market and rupee-dollar exchange rate is being closely monitored and developing trends of the market will be reflected in future price changes.

Source-On Request