OREANDA-NEWS. Indian Oil Corporation Ltd. has decided to decrease the retail selling price of Petrol by Rs.0.75/litre (excluding state levies) w.e.f midnight of 31st Mar/1st Apr'14.

The price of Petrol was last revised upwards by Rs. 0.60/litre (excluding state levies) w.e.f 1st March 2014. Since last price change, there is a declining trend in international prices of MS and the INR-USD exchange rate has also been strengthening. The combined impact of both these factors has resulted in reduction in price of Petrol, the benefit of which is being passed on to consumers through price decrease of Rs 0.75/litre (excluding VAT). With this price revision, RSP at Delhi shall decrease by Rs0.90/litre.

In pursuant to GOI order dated 17th Jan'13, OMCs had been authorized to increase the retail selling price of Diesel (Retail) within a small range every month until further orders. Accordingly, since then, Retail Diesel prices have been revised every month. However, the under-recovery on Retail Diesel is currently Rs.5.93/litre which is below Rs.6/litre, which is the interim subsidy cap recommended by the Expert Group 2013 of Dr. Kirit Parikh. Hence, the issue of monthly price increase is under consideration of the Govt. and the matter has been referred to the Election Commission. A decision regarding revision of Diesel Retail price shall therefore be taken on receipt of further advice by the Govt. in this context.

Further, the Corporation continues to suffer under-recoveries on sale of SKO (PDS) of Rs.34.43/litre & LPG (Dom) of Rs. 505.50/cyl.

During 2013-14, Corporation has suffered an under-recovery on sale of three sensitive products of around Rs 73,000 crore (Industry around Rs 1,41,000 crore).

The movement of prices in international oil market and INR-USD exchange rate is being closely monitored and developing trends of the market will be reflected in future price changes.