petrol price will touch Rs 70 a litre

Petrol prices are expected to rise by Rs10-20 a litre as the government is considering decontrol of fuel prices, a move that may relieve public sector oil marketing companies of the burden of subsidised sales that have cost them over Rs200,000 crore in lost revenues.
With the price of crude oil touching an all-time high of $135 a barrel in the international markets, the government is weighing plans to decontrol petrol prices while keeping some subsidies on diesel, cooking gas and kerosene.
"One of the options being considered is deregulating petrol prices," a petroleum ministry official said, adding, "The country's preferred auto fuel diesel will, however, continue to be subsidised even though a marginal Rs2-3 a litre hike in prices may be announced."
With petrol, currently being sold at a loss of Rs16.34 a litre and diesel at a loss of Rs23.49 per litre, a hike in petrol prices would mean that it will cost around Rs70 a litre in a metros like Mumbai.
Deregulating petrol price is the one option being considered after the finance ministry turned down petroleum ministry's request for withdrawing the five per cent customs duty on crude oil and that on petrol and diesel to 2.5 per cent from current 7.5 per cent.
The ministry had also sought lowering of excise duty on the two fuels but finance ministry is in no mood to oblige, the official said.
Petroleum ministry officials also content that unlike diesel, which is widely consumed by goods transporters, a rise in petrol prices will only have negligible or little impact on inflation and price deregulation would not add to the already high inflation rate.
However, deregulating petrol would lower the revenue losses of oil marketing companies by just Rs20,000 crore.
State-run oil firms, meanwhile, have raised the security deposit for new cooking gas (LPG) connections by Rs400 to Rs1,250 per cylinder.
Indian Oil(IOC), Bharat Petroleum(BPCL) and Hindustan Petroleum(HPCL) raised refundable security deposit for new connections to Rs1,250 per cylinder from Rs850 due to rise in the cost of steel, which is used as an input, an industry official said.

3 comments: Team said...

Dear Visitors,

This blog is really nice and informative. We are pleased to know this blog is really helping people. Its our pleasure to post informative content on this useful blog created by webmaster.

Now once again as on 02-June-08 around 11.15AM,market is trying to become bit bullish but still we cant rule out profit booking from every rise. Still we suggest everyone to remember this is Indian stock market
so watch your every step. Avoid going Long until Nifty crosses 5050 mark and avoid going short until nifty breaks 4820. Till then enjoy the consolidation phase and prefer to do intraday trading only.




sharetipsinfo said...


Indian stock market is one of the most volatile market. Its two main stock exchanges are NSEand BSE. Both exchanges generally follow same trend.

NSE and BSE offers platform for investment in Indian stock market. In India there are many traders who prefer NSE over BSE as they consider BSE
as more volatile exchange but truth is that all exchanges be it NSE, BSE or LSE are volatile and should not be considered as a place for speculation.
One should strictly follow technical analyses if they want to earn regularly from any stock market.

Please remember analyses of stock market be it technical or fundamental do help!!


+91- 9891655316
+91- 9899056796
+91- 9891890425

KnowYourProfit said...

This blog is quite nice and informative blog created by the webmaster

As per our previous posting we had already told that the Indian Stock market is now in such a position that either side breakout can be witnessed soon