Log in
Login
Password
Remember
Forgot password ?
Become a member for free
Sign up
Sign up
Settings
Settings
Dynamic quotes 

4-Traders Homepage  >  Equities  >  NATIONAL STOCK EXCHANGE OF INDIA  >  Indian Oil Corporation Limited    IOC   INE242A01010

End-of-day quote. End-of-day quote  - 07/01
473.1 INR   +7.01%
06/30 INDIAN OIL : Petrol price cut by 89 paise, diesel by Rs. 0.49 per li..
06/25 Indian Firms Discuss Partial Purchase of Russian Oil Company
06/25 INDIAN OIL : BlackBuck signs MoU with Indian Oil Corporation to enha..
SummaryQuotesChartsNewsAnalysisCalendarCompanyFinancialsConsensusRevisions 
News SummaryMost relevantAll newsSector news 

India Fuel Retailers To Cut Gasoline Prices By INR2.02/Liter

share with twitter share with LinkedIn share with facebook
share via e-mail
0
06/02/2012 | 03:48pm CEST

--Retailers to cut gasoline prices with effect from Sunday

--Decline in international prices help, but rupee decline vs dollar takes away benefit

(Adds comments from Indian Oil Corp., background.)

 
    By Rakesh Sharma and Raghavendra Upadhyaya 
 

India's state fuel retailers Saturday decided to cut retail gasoline prices by INR2.02 (3.6 cents) a liter, with effect from Sunday, Indian Oil Corp. (530965.BY) said in a statement.

The cut in prices follows a steep increase in gasoline prices in May, which drew heated protests from the ruling Congress party's key allies, opposition parties and consumers.

The 11.5% increase in gasoline prices on May 24 was the first in six months for the three retailers: Bharat Petroleum Corp. (500547.BY), Hindustan Petroleum Corp. (500104.BY) and Indian Oil.

This increase had taken the gasoline price to INR73.18 a liter at New Delhi retail fuel outlets. The rates vary across India due to local taxes.

"Since the last pricing cycle, though international oil prices have decreased quite significantly, the USD-INR exchange rate has shown further deterioration," said Indian Oil in its statement to explain the decision for a partial rollback in gasoline prices.

The price cut may also help revive demand for gasoline-powered cars, which make up for almost half of the total passenger vehicle sales in India. Major auto makers in India posted a decline or a marginal growth in passenger vehicle sales in May as continued weak demand for gasoline models outweighed rising sales of diesel vehicles.

The average Indian crude basket price declined $105.57 a barrel for the two weeks ended May 31 from $111.55 a barrel in the 15-day period that ended May 15, the government data showed.

The Indian rupee however depreciated against the dollar and is now around INR55.57 to a dollar. The rupee has depreciated almost 9% against the dollar since the end of April.

The three retailers have freedom to revise gasoline rates every two weeks, in line with the benchmark global prices. But the unpalatable decision of price increases had been rocked by protests.

In the year ended March 31, the fuel retailers raised gasoline prices only thrice and cut rates twice. The companies had to absorb losses worth INR46.51 billion on gasoline sales as they couldn't revise rates after Dec. 1, in line with benchmark international prices.

The gasoline price increase has upset household budgets of consumers who are already reeling due to high inflation. Government data earlier this month showed inflation in April accelerated to 7.23% from a year earlier, compared with 6.89% in March, as food prices rose.

The government continues to keep tight control over diesel, kerosene and cooking gas rates, on which the fuel retailers are daily losing INR5.09 billion. Oil Minister Jaipal Reddy has said he won't touch the prices of the three products.

The government compensates retailers for revenue losses suffered on sales of diesel and cooking fuels through direct cash subsidy.

-By Rakesh Sharma and Raghavendra Upadhyaya, Dow Jones Newswires; 91 22 61456103; raghavendra.upadhyaya@dowjones.com

share with twitter share with LinkedIn share with facebook
share via e-mail
0
React to this article
Latest news on INDIAN OIL CORPORATION LIM
01:28p INDIAN OIL : Petrol, diesel prices cut
06/30 INDIAN OIL : Petrol price cut by 89 paise, diesel by Rs. 0.49 per litre
06/28 INDIAN OIL : Ioc, bprl & oil to pay $3.3 billion to rosnet in sep 2016
06/25 Indian Firms Discuss Partial Purchase of Russian Oil Company
06/25 INDIAN OIL : BlackBuck signs MoU with Indian Oil Corporation to enhance benefits..
06/24 INDIAN OIL : BlackBuck signs MoU with Indian Oil Corporation to enhance benefits..
06/24 ICRA : comments on Brexit impact on Indian Economy and Indian O&G Industry
06/24 INDIAN OIL : Ioc to go aggressive on petrochemicals
06/23 INDIAN OIL : Logistics portal blackbuck ties up with ioc for fuel discounts
06/22 Indian oil to join coal india, ntpc to revive 3 fertiliser plants
Advertisement
News chart
Full-screen chart
Income Statement Evolution
More Financials