The Oil Ministry is considering to regulate petrol prices again, reports NewsWire18, quoting a source in the ministry. The ministry has also said that regular petrol price hike is 'untenable'. However, the oil ministry said there was no plan to regulate petrol prices "as of now".
The recent crisis in West Asia has spiked oil prices which has been a major concern for countries like India. There was a growing worry that if the crisis continues, then any further hike in the crude oil prices will lead to an increase in petrol product prices.
For 2011-12, the finance ministry has estimated Rs 23,640 crore in oil subsidy, lower than Rs 38,386 crore of current fiscal. Global crude oil prices are at the highest level since 2008, touching USD 116 per barrel.
The government had in June last year decided to free petrol pricing from its control and the same on diesel was to be done eventually. The spike in crude rates has meant that even retail rates of petrol have not moved in tandem with cost while the deregulation of diesel has been kept in abeyance
At 11:48 hrs Bharat Petroleum Corporation (BPCL) was quoting at Rs 556.50, down Rs 5.30, or 0.94% on the NSE.
At 11:48 hrs Hindustan Petroleum Corporation (HPCL) was quoting at Rs 320.30, down Rs 3.45, or 1.07% on the NSE.
At 11:48 hrs Indian Oil Corporation (IOC) was quoting at Rs 309.55, down Rs 0.35, or 0.11% on the NSE.
