India will undergo another round of fuel price revision in October. Once the government gets the clear idea about the mark that high international crude prices will leave on revenues of state-run oil retailing firms in the first half of Fiscal year 2009, then the changes will be made.
The fuel prices were hiked on June, 2008, where the petrol price was raised by Rs 5 per litre, diesel by Rs 3 a litre and domestic LPG by Rs 50 per cylinder. But the hike has not favoured the oil sellers either, despite the hike and duty cuts, Indian Oil, Bharat Petroleum and Hindustan Petroleum are currently said to be losing Rs 14.92 a litre on petrol, Rs 24.90 on diesel, Rs 38.098 on kerosene and Rs 338.53 per 14.2 kg domestic LPG cylinder.
The recent hike has already left a dent in auto market sales and the further hike is going to affect adversely. The car sales may see a dip as people will think again before buying a new car. Now, many car manufacturers are coming up with other options like CNG version and hybrid cars to fight this issue.
The recent hike has also pushed inflation in the country to 11.42%. The crude prices have gone high again from $135 a barrel to $145 a barrel.