Petrol Prices to Hike by Rs 5 Within Next 24 to 48 Hours

Constant hike in petrol prices has already disturbed the overall budget of a common Indian Family, now the news of an expected hike of Rs 5 in the petrol prices within next 24 to 48 hours has come as a shock to all of us, as nobody was wishing it to happen at such a time. But our state-owned oil marketing companies don't think that way, according to them, they are bearing a loss of Rs 550 crore a day on under-recovering due to higher crude prices in the global markets.

A source has revealed it to NDTV that the price increases in this round might also include other fuel products including LPG and Diesel, however that will happen some days later. The oil marketing companies are losing about Rs 17/litre on diesel, Rs 32.7/litre on Kerosen and Rs 347/cylinder on LPG sales every day. India's biggest oil company, Indian Oil reported a loss of Rs 22,451 crore in the first quarter of the current financial year, but what has been more shocking is the fact that crude prices were falling during those months.

Oil firms have said that they are still waiting for the compensation money of Rs 32,000 crore for the first quater of the year. In fact the companies have not been compensated for petrol since the deregulation of petrol prices in June 2010. And all these factors have directly and indirectly compelled the oil marketing companies to increase the fuel prices. However, such a move would be tough, as the close ally of the congress, TMC has said they will oppose any such hike in fuel prices. "We are against any kind of price hike," TMC leader and Railway Minister Mukul Roy said.

Source: NDTV