The Indian Oil Corporation (IOC) has recently raised the price of its two premium brand of petrol and diesel named XtraPremium petrol and XtraMile diesel. In a recent announcement released by the company, IOC has informed that the petrol price has been increased by 20 paise and the diesel price has a 10 paise hike. The sources from the industry have informed that the decision was taken as the IOC, HPCL and Bharat Petroleum are together losing a huge amount of around Rs 220 crore per day on the sales of petroleum products at subsidized rates.
Informing that the new price rates are already in effect from midnight of 3rd January, a top official of IOC has stated that the prices were hiked at the minimum level. The official also said that the branded petrol in Delhi will now cost Rs 1.70 more than the normal petrol (Rs 43.52 per liter) and the premium quality diesel would be costlier by 50 paise from the normal (Rs 30.48 per liter) price. In the words of a source, "This price revision is at the minimum level. However, depending upon market conditions there is scope for revision in prices both upward and downward". The source also informed that the public sector oil marketing companies have the freedom to revise the prices of their premium auto fuel brands without Government permission as well.
While talking about the new hike in the prices of petrol and diesel, a source from the industry has stated that despite IOC has increased the prices in the above stated rate, the prices are still lower than the rates at which the private sector players like Reliance Industries Ltd and Essar sell there products. In the words of the source, "Besides, these prices are lower than the desired increase in the retail selling prices due to soaring crude prices". A top IOC official has also commented, "People are now willing to pay higher price for quality products. With the launch of new generation cars and the changing scene in auto sector in India large number of customers are demanding branded fuel. Trend shows 25-30 per cent customers shifting to branded fuel from normal fuel".
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| Posted : 1/7/2008 |
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