OREANDA-NEWS. October 12, 2012. It has been decided to revise the MS prices downward by Rs. 0.56 per litre (excluding State levies in Delhi) w.e.f 9th Oct’12.

Presently, the INR-USD exchange rate has shown an appreciating trend. The international oil prices, however, continue to remain firm casting their shadow on MS prices. There has been significant volatility in International Oil prices and INR-USD exchange rate. The trends in the international oil market and INR-USD exchange rate shall be closely monitored and the same shall be reflected in future price changes.

It may be noted that Oil Marketing Companies have incurred a loss of Rs 2600 crore approximately on sale of MS during April-September’12 due to inability to change retail selling prices to the desired extent in line with market conditions.

As is known, in addition to loss on sale of MS, OMCs are also suffering under-recovery on sale of three sensitive petroleum products, namely HSD (Rs.11.65/litre), SKO(PDS) (Rs.33.93/litre) & LPG (Dom) (Rs.468.50/cyl). Projected under-recovery on these products is expected to cross Rs.160000 crore for the current year.