State-run fuel retailers have threatened to raise gasoline prices sharply if the government does not compensate them for revenue losses on retail sales, Indian Oil Corporation (IOC) said yesterday (April 17, 2012).
It said the government should 'temporarily' consider gasoline as a regulated commodity on a par with other subsidised fuels -- diesel, cooking gas and kerosene -- and provide cash compensation for retail sales or reduce factory gate tax on the fuel to the extent of revenue losses.
IOC said state-run refiners cannot sustain the current scenario where they import crude oil at $121.29 per barrel and sell at $109.03 per barrel.
'Continuation of such pricing will only impede the ability of the Company to import crude oil and may affect product supply-demand balance,' IOC said in the statement. It added the alternative was to 'increase the price of petrol by Rs8.04 per litre (excluding State levies) with immediate effect.'
The companies previously raised gasoline prices on December 1.
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It said the government should 'temporarily' consider gasoline as a regulated commodity on a par with other subsidised fuels -- diesel, cooking gas and kerosene -- and provide cash compensation for retail sales or reduce factory gate tax on the fuel to the extent of revenue losses.
IOC said state-run refiners cannot sustain the current scenario where they import crude oil at $121.29 per barrel and sell at $109.03 per barrel.
'Continuation of such pricing will only impede the ability of the Company to import crude oil and may affect product supply-demand balance,' IOC said in the statement. It added the alternative was to 'increase the price of petrol by Rs8.04 per litre (excluding State levies) with immediate effect.'
The companies previously raised gasoline prices on December 1.
....more info