Oil corporations’ decision of hike fuel prices revealed after today’s govt. clarification on decision of duty reduction and subsidy compensation.

A large amount of losses has revised by these State owned oil companies that around Rs 7.65 per litre on petrol sales, after increasing 20 %sales sale tax. While raised rates in Delhi is Rs 9.18 per litre.

Reasoning the retail selling price on fuel for their huge losses that demand hike fuel prices, they have demanded a cut in the Rs 14.35 a litre excise duty on petrol.

Demanding govt. to make good the losses, Oil PSUs said, “We had clearly told the government that if these demands are not accepted, then oil companies will have no option but to raise petrol prices.”

All the Oil firms like Indian Oil, Hindustan Petroleum and Bharat Petroleum use 30th/31st and 15th of every month as fortnightly average of benchmark oil price and foreign exchange rate to revise the retail price of fuel to be paid on 1st and 16th of every month.

Reviewing procedure of fuel prices were on Saturday, but due to pending govt. clarification the date has gone to Sunday.

If we enlighten the earlier last December record, the International fuel prices have raised from $109 a barrel to $134. In June 2010 while petrol price sector was freed from government, Oil firms hit loss about Rs 4,500 crore on selling petrol below cost.

That time due to having no controlled over this, the government refused to compensate them for this loss. Just only rates of diesel, domestic LPG and kerosene which were sold way below cost are under government regular inspection.

Oil firms, dealing lose about Rs 140,000 crore this fiscal on selling diesel, domestic LPG and kerosene, warned the govt. if nothing about change in retail selling price has reflect, the chances of inflation will raise as hike fuel price as losses of oil firms.