Indian Oil Corporation seeking fuel price hike

Indian Oil Corporation seeking fuel price hike

Indian Oil Corporation (IOC) is seeking a big price hike on the fuels as the international oil prices have touched a high of record $72 per barrel.

IOC is asking for an Rs 5.60 per liter increase in petrol and Rs 7.60 a liter hike in diesel prices. This would help them control the Rs 80 crore-revenue loss per day due to subsidized rates of fuel prices.

IOC chairperson Mr. S Behuria said in a statement on this issue: “If crude prices stay at current levels, our revenue loss for fiscal 2006-07 would be around Rs 30,000 crores.”

The company is already suffering huge losses, as they have to sell kerosene at a loss of Rs 13 per liter. The problem is further intensified as they are selling LPG Gas Cylinders at a loss of Rs 191 on sale of every cylinder because of government policies.

Petroleum Minister Murli Deora would be taking up this matter with the Finance Minister P Chidambaram next week to discuss a package of tax measures to help loss-making oil refiners.