Oil companies may bring upward revision in petrol prices next month

NEW DELHI: The state refiners are planning to surge the petrol prices next month if they fail to receive proper compensation for selling the fuel below market rates. Centre is mulling to review the diesel, kerosene and cooking gas rates soon, which may bring upward revision in the prices.

Indian Oil chairman RS Butola, said, “We will take a final call by end of March when we close accounts for the year.” The state-run oil marketing companies have failed to sustain revenue loss on selling petrol below the market rates and also Centre needs to compensate them for the fiscal year 2011-12.

OMCs have been demanding almost Rs 4,500-crore compensation for keeping petrol prices below market rates since December. While speaking at the 7th Asia Gas Partnership Summit, oil minister Jaipal Reddy has clarified that Centre would relook at the prices of diesel, kerosene and cooking gas.

Mr Reddy has not given any particular time period for the price review. Presently, government regulates prices of diesel, kerosene and cooking gas via an empowered group of ministers (EGoM), which is chaired by finance minister Pranab Mukherjee.