Petrol prices likely to go up
Just when petrol consumers have started to breathe a sigh of relief, the Oil Manufacturing Companies might come back with Re 0.50 – 0.60 rise in the petrol price. The price hike is more likely to happen on Friday that is today from midnight. This is beacuse the OMCs failed to impress the Oil Ministry to agree with them until yesterday, when the hike was most expected. Though it needs a nod of approval from government to pass on the losses of the OMCs to the consumers, the depreciating rupee has been a major cause of concern to take this step. It is the falling rupee value which is once again the culprit that slid further yesterday afternoon to 54.20 from 53.75 yesterday morning recording 18% drop in the three months.
The global crude oil price might be an innocent party here as the fuel prices, petrol price in particular is adjusted by the state-owned oil companies based on the crude oil price combined with the rupee exchange value. However, we cannot blame the OMCs either as the depreciating rupee has put an enormous pressure on the state-owned oil companies who are absorbing the brunt in the middle. The petrol is not a commodity which is amply available in the country to meet the day-to-day needs of the entire Indian population. This forced the oil companies to import the oil barrels from the U.S , Singapore or other markets. While the crude oil was compensating for the fluctuating rupee for a while, but with the rupee dipping further and further low, OMCs obviously need some way out of it.
However, the OMCs had warned the consumers beforehand about a possible price hike right during the twice implemented petrol price reduction. Moreover, they have cautioned about a possible petrol price revision every fortnight based on the crude oil price and rupee exchange value. The month of November has seen quite a few ups and downs in the petrol price. Early in November, on 3rd, the OMCs without taking the heed from the opposition went ahead with Rs 1.80 price hike. Tracing their steps back, around Rs 2.00 was slashed down from the petrol price. The second petrol price reduction came more of a surprise with a Rs 0.62 cut down.
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