The Indian Oil Corporation (IOC) has served an ultimatum to the government on Tuesday that it would go for a petrol price hike of Rs 8 per litre if the excise duty wasn't reduced.
IOC has made it clear that it couldn't sustain the current scenario any longer, where importing crude oil at $121.12 per barrel and selling it for just $109.03 per barrel. The oil companies were currently incurring losses around Rs 8 per litre. If the government fail to compensate for the loss it has been incurring from retail fuel sale, then the petrol price hike in inevitable.
In December last year, the crude price was at $109.03 per barrel. But now, it has gone up to $132.45 per barrel. With this effect, the oil companies were forced to increase the price by Rs.8 per litre and this is exclusive of all taxes. Will government comes up with a solution or puts the burden on the common people is to be seen!
IOC has made it clear that it couldn't sustain the current scenario any longer, where importing crude oil at $121.12 per barrel and selling it for just $109.03 per barrel. The oil companies were currently incurring losses around Rs 8 per litre. If the government fail to compensate for the loss it has been incurring from retail fuel sale, then the petrol price hike in inevitable.
In December last year, the crude price was at $109.03 per barrel. But now, it has gone up to $132.45 per barrel. With this effect, the oil companies were forced to increase the price by Rs.8 per litre and this is exclusive of all taxes. Will government comes up with a solution or puts the burden on the common people is to be seen!
