Petrol price hike put off till next week

New Delhi - 01 Jan 2012: Even as the state-owned oil companies cut aviation turbine fuel (ATF) price by Rs. 622 per kilolitre (kl) in Delhi, the government on Saturday decided to spare the public a petrol price hike on New Year's Eve.

Officials in the oil marketing companies (OMCs) said the firms had already done their homework and were working on a hike of something between Rs. 1.50 and Rs. 2 per litre but were asked by the Petrol and Natural Gas Ministry to hold back the hike for a few days.

"It was felt that it would not be a nice New Year gift to burden the people with a petrol hike on the very first day of 2012. Therefore, it was decided not to go ahead with the petrol hike and give it a look next week," a senior official remarked.

Although the government had decontrolled petrol prices in June 2010, it still continues to influence the movement of the prices in a subtle manner.

On the other hand, OMCs cut the price of ATF in Delhi to Rs. 63,077 per kl with effect from Saturday midnight. IOC and other fuel retailers, Hindustan Petroleum Corporation Limited and Bharat Petroleum Corporation Limited had on December 16 reduced ATF price by 1.3 per cent to Rs. 63,739.10 per kl. Jet fuel in Mumbai will cost Rs. 64,054 per kl from Sunday as against the current rate of Rs. 64,730.23 per kl, a decrease of over Rs. 676 per kl.

The reductions this month come following a steep 3.7 per cent hike in rates effected on December 1. Prior to that, ATF rates had been increased by Rs. 1,195 per kl from November 16 and by 3.8 per cent or Rs. 2,845 per kl on November 1. The official said the reduction was possible because the fall in international jet fuel prices had offset weakening of the rupee against the U.S. dollar.