The Public Sector Oil Marketing Companies (IOCL, BPCL and HPCL) have been moderating the impact of high international oil prices, which have touched record highs. The Indian Basket of Crude oil is $ 123/bbl, having recently touched its highest level at $ 129 per barrel. At the current international price levels, the under-recoveries of Oil Marketing Companies (OMCs) on the sale of Petrol, Diesel, PDS Kerosene and Domestic LPG are projected to exceed Rs. 2,45,305 crore during 2008-09.
To protect the common man from the inflationary impact of high international oil prices, the Government and the Public Sector Oil Marketing Companies (OMCs) have been absorbing most of the burden. However, due to the relentless increase in international oil prices, it has now become necessary for the consumer, who is an important stake holder, to also shoulder a small part of the increased burden, through a marginal hike in the prices of sensitive petroleum products.
Against a required price increase of Rs. 21.43 per litre for Petrol, Government has decided to marginally increase the retail selling price by Rs. 5 per litre. Against a required price increase of Rs. 31.58 per litre for Diesel, Government has decided to marginally increase the retail selling price by Rs. 3 per litre. Similarly, against a required price increase of Rs. 353 per cylinder for Domestic LPG, the Government has decided to marginally increase the price by Rs. 50 per cylinder. Keeping its commitment to the common man, Government has made no increase in the price of PDS Kerosene.
The above price increases will meet only a small portion of the OMCs’ under-recoveries projected for 2008-09. The major portion of the under-recoveries will continue to be absorbed by the Public Sector oil companies and the Government.
Government is committed to protecting the interest of the common man as well as ensuring the financial health of Public Sector oil marketing companies, which is essential for the energy security of the country.
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