In the wake of rising criticism by their move to raise the
petrol price by Rs 1.80 a litre, the PSU
oil firms said they are ready to roll back the increase if the
government ask them to do so.
For the first time since petrol price was decontrolled last June, state-owned oil firms were given the freedom to fix rates in line with the cost. The PSUs in a hurriedly called a press conference and said they were compelled to raise the price as they had lost Rs 2,468 crore on selling the fuel below cost this fiscal.
READ what the
PM feels about the hike in petrol prices "We do not plan to affect a roll-back of prices... but if we get a directive from the government, we will have to implement that," Indian Oil Corp (IOC) Chairman R S Butola said at the press conference.
The statement came at a time when there was a clamour for a partial rollback in rates even from within the ruling Congress party.
Butola, who was accompanied by BPCL Chairman R K Singh, said rupee depreciating to Rs 49.40 to a US dollar from Rs 46.29 at the time of last petrol price hike on September 16, was the main reason for increasing the price.
"This has been a very difficult year for oil marketing companies. Unlike diesel, domestic LPG and kerosene, for which the OMCs get subsidy from the government, we do not get any compensation for selling fuel at rates lower than cost," he said.
Singh said the companies took a studied decision to raise prices as they ran out of capital to meet even the daily expenses.
"Given the magnitude of the losses, the choice before us was to either cut down production or pass on the increase to consumers. We chose to raise prices and continue supply lines," Butola said.
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