Three state-run oil marketing companies rose by 1.48% to 3.30% on BSE on reports an Empowered Group of Ministers headed by Finance Minister Pranab Mukherjee is scheduled to meet on 11 May 2011 to mull on a hike in fuel prices.
State-owned Bharat Petroleum Corporation (up 3.30%), Hindustan Petroleum Corporation (up 1.69%) and Indian Oil Corporation (IOC) (up 1.48%), rose.
According to reports, the government plans to hike diesel prices by up to Rs. 3 a litre soon after the Assembly elections in five states are over next week, while an equivalent steep increase of Rs. 3-4 a litre in petrol rates is also on card. Polling in the last phase of Assembly elections completes on 10 May 2011. Reports suggest that an increase in domestic LPG prices may also be discussed at the Empowered Group of Ministers (EGoM) meeting.
Ranbir Singh Butola, chairman of IOC, was last month quoted by media as saying that IOC was losing Rs. 18.11 per litre on diesel, Rs. 28.33 a litre on kerosene and Rs. 315.86 per cooking gas cylinder. Butola had said that IOC was losing money on petrol but declined to put a number to it since the fuel was deregulated and the company was not supposed to get compensation from the government for keeping pump prices artificially low.
A hike in petrol prices will boost the finances of state-run firms since crude oil prices have soared to above $110 per barrel in the international market. US crude futures were down 0.05% at $111 a barrel today, 4 May 2011.
State-owned Bharat Petroleum Corporation (up 3.30%), Hindustan Petroleum Corporation (up 1.69%) and Indian Oil Corporation (IOC) (up 1.48%), rose.
According to reports, the government plans to hike diesel prices by up to Rs. 3 a litre soon after the Assembly elections in five states are over next week, while an equivalent steep increase of Rs. 3-4 a litre in petrol rates is also on card. Polling in the last phase of Assembly elections completes on 10 May 2011. Reports suggest that an increase in domestic LPG prices may also be discussed at the Empowered Group of Ministers (EGoM) meeting.
Ranbir Singh Butola, chairman of IOC, was last month quoted by media as saying that IOC was losing Rs. 18.11 per litre on diesel, Rs. 28.33 a litre on kerosene and Rs. 315.86 per cooking gas cylinder. Butola had said that IOC was losing money on petrol but declined to put a number to it since the fuel was deregulated and the company was not supposed to get compensation from the government for keeping pump prices artificially low.
A hike in petrol prices will boost the finances of state-run firms since crude oil prices have soared to above $110 per barrel in the international market. US crude futures were down 0.05% at $111 a barrel today, 4 May 2011.
0 comments:
Post a Comment