New Delhi, Nov. 1: Petrol prices may rise again by about Rs 2 a litre. State-run petroleum marketing firms are considering the hike as they are suffering losses on the sale of the fuel because of fluctuations in global crude prices.
However, there would be no increase in diesel, kerosene and domestic cooking gas prices.
"We are losing about Rs 1.5 per litre and to cover it, the price hike after factoring in local levies should be around Rs 1.82 per litre. That is the position of oil marketing companies," B. Mukherjee, finance director of HPCL, said.
The hike in petrol price, if carried out, would be the fourth this year.
Since January 2011, the price of petrol has been raised thrice. Oil companies first hiked prices by Rs 3.50 per litre in January and then again in May by Rs 5 per litre. Last month, prices were increased by Rs 3.14 per litre.
"We are in discussion with other oil companies on raising prices. Let's say we are toying with the idea. It may happen. We will see," he said when asked if the increase was likely within the next two weeks.
Petrol prices are reviewed by the state-owned oil firms on a fortnightly basis.
The Indian basket of crude has moved upward in October from an average price of $103.63 per barrel in the first fortnight of the month to $108.59 in the second fortnight ended October 31.
Apart from the spike in global crude prices, the fall in the rupee is hurting fuel marketing companies.
Oil firms import around 50,000 barrels of crude each day. With the rupee weakening over 12 per cent, they had to pay Rs 4,108 crore each day during the second quarter to purchase oil instead of the Rs 3,438 crore they paid in the April-June quarter of the current financial year, analysts said.
While petrol prices were deregulated last year, oil companies are cumulatively losing Rs 319 crore everyday on diesel, LPG and kerosene oil, which are still under regulation.
The state-owned firms are losing Rs 8.58 per litre on diesel, Rs 25.66 per litre on kerosene and Rs 260.50 on a domestic LPG cylinder.
The companies have reported under-recoveries of Rs 64,900 crore on these for the first half of the fiscal.
The three state-owned firms are projected to suffer a revenue loss of Rs 121,571 crore with an average price of $110 per barrel. The average Indian basket crude price was $85.09 per barrel during 2010-11.
For the second quarter of this financial year, HPCL has reported a loss of Rs 3,365 crore.
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