12:06 pm - Thursday August 21, 2014

Oil companies not to cut petrol prices despite fall in global rates

In some disappointing news for those who were expecting that the prices of petrol would fall by Rs. 2.20 to 2.30 per litre, the oil companies said that it will not be reducing the prices. The prices of petrol will not be cut despite the fact that the global rates have fallen down to 18 month low.

The reason behind it is the falling rupee to an all time low of Rs. 57.30 to a US dollar and has wiped away most of the gains from oil dropping below USB 90 per barrel for the first time since December 2010. S Jaipal Reddy, the Oil minister said, “The oil companies are fully cognisant of facts. They are watching the volatility (in rupee and global oil prices). Very soon they will take a decision”.

The dropping value of the rupee has made the imports costlier. The state owned oil companies have a practice of revising the rates on the 1st and the 16th of every month based on the average import costs and forex rates of the earlier fortnight.

Reddy said that the situation is being observed with keen interest and are watching it on a day to day basis. Some officials said that the companies like Indian Oil Corp, Hindustan Petroleum Corp and Bharat Petroleum Corp will hold the prices of petrol for a few more days after and watch the developing situation.

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