IndianOil plans to raise petrol prices
New Delhi   26-Apr-2011

State-run IndianOil (IOC) plans to raise petrol prices at the “earliest possible opportunity“, its chairman said on Monday, as current Indian petrol prices are based on global prices at $100 a barrel (Rs. 4,450).

R.S. Butola's remarks pushed Indian bond prices lower on Monday on worries about rising inflationary pressure.

Brent crude futures rose above $124 a barrel on Monday after violence in Syria and Yemen escalated over the weekend, boosting fears that unrest may disrupt more oil supplies in West Asia and North Africa.

“The moment we think we are prepared, the industry is prepared and the environment is accepting it, we will do it,” Butola told reporters at a news conference.

Earlier, IOC's finance head, S.V. Narasimhan, told reporters that the firm's daily revenue loss on the sale of subsidised fuel was Rs. 297 crore.

Last June, the government allowed staterun oil firms to fix the price of petrol but continued to control the prices of diesel, kerosene and cooking gas to protect the poor and try to tame inflation.

India's fuel retailers have been raising petrol prices since June but pricing decisions remain a political issue as fuel inflation hovers around 13 percent, helping drive headline inflation that stood at nearly 9% for March.

Indian firms have not revised petrol prices since January, when global oil prices were below $100/barrel.