Latest Car News in India

Tuesday, February 14, 2012

By Pawan Rana

Expected petrol price rise by Rs.3 just after the UP elections

According to the sources, the petrol price is expected to increase by Rs.3 just after the UP assembly election. The central government has directed the state oil companies to freeze the fuel price to avoid conveying any negative message to the people during the entire election period. Besides, the higher international prices and disturbed market equations government doesn’t allow the state-owned oil companies to make any changes in the fuel prices. If words to be believed, these oil companies have been provided the compensation from the central government to make-up the losses.

The Indian Oil Corporation, Hindustan Petroleum and Bharat Petroleum oil brand need to get an approval from the central government before making any change in the fuel prices. The sources revealed that from last six months the petrol price high of USD 118 per barrel in the international market.

But, under the direction of the government the Indian oil companies are charging Rs.3 less than the international market rates. The Indian Oil Corporation (IOC) has reported an uneven profit margin for the last three months along with the disturbed financial backing for the two quarters. Unless the government provide the compensation to the company for the last quarter, it may face the loss at the end of this financial year.

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