As the assembly polls in major Indian States are concluding, government may cut down the fuel prices. Indian Government plans to slash down petrol prices next week by Rs 10/litre, diesel prices by Rs 3/litre, and LPG prices by Rs 20/cylinder.
It is also believed that for the first time in the past three year, major oil companies in India including the Indian Oil, Bharat Petroleum, and Hindustan Petroleum have gained a good profit by selling petrol at a profit of Rs 14.89/litre and diesel at a profit of Rs 3.03/litre.
One of the industry source said, “The Congress-led coalition is keen on rolling back the Rs 5 a litre hike in petrol, Rs 3 per litre increase in diesel and Rs 50 per cylinder hike in LPG prices announced in June. As oil firms continue to make losses on LPG, some of the margins on petrol may be used to bring down the cooking fuel price”.
State-run oil companies have seen huge profit margins since November 1, 2008. During that time the government was not ready to announce the revised prices as it may have an impact on appeasing voters.
In the second fortnight of November, the state-run oil companies together have gained a margin of Rs 44 Crore/day on petrol and Rs 42 Crore/ day on diesel based on the average international oil prices. However, the companies experienced high degree of losses with a loss of Rs 29 Crore/day on LPG and Rs 66 Crore/day on the sale of kerosene.