Petroleum companies are now revising the fuel prices. These companies are dithering to reduce the retail fuel prices but have reduced the fuel prices of some branded fuel.
The country’s largest oil marketing company Indian Oil Corporation (IOC) has lowered the price of its branded diesel, XtraMile, across the country. In Mumbai, the price has been lowered by Rs 1.25 to Rs 41.18 a litre. The company is also likely to lower the price of branded petrol, Xtra Premium, by Re 1 to around Rs 58 a litre in Mumbai.
Other Indian oil companies like Hindustan Petroleum (HPCL) and Bharat Petroleum (BPCL) are also expected to follow the suit and reduce the price of their branded fuels across the country.
Oil marketing companies had a tough time when the international crude prices were raised and were forced to sell fuel at a loss. They are now making good profits but refuse to cut down the retail prices of petroleum products so that they can recover the loss.
At this stage the government is not permitting state-run oil companies to lower retail prices as it desires to reduce the extent of oil bond it issues. In India the highest price switched over to $142.04 a barrel in early July has now come down to $43.82 a barrel, the lowest in past three years.