News Release Details

Press Release on MS Price Revision 23/05/2012
New Delhi 23-May-2012

Post deregulation of MS wef 25.06.10, Oil Marketing Companies (OMCs) are reviewing MS prices on fortnightly basis and have revised the prices on several occasions.

During 2011-12, MS prices were revised five times in order to bring domestic prices in line with prices in the international market. Out of this, there were upward revision three times, and downward revision twice, latest being the price reduction of Rs 0.78/litre (Delhi market) on 1st Dec’11. Thereafter, due to domestic market conditions, it has not been possible to change selling price of MS in line with international prices. As a result, Corporation has suffered a loss of Rs.2108 crore (Industry: Rs 4651 crore) since the last price change, of which Rs 1052 Crore (Industry: Rs 2321 crore) loss was incurred up to 31st March, 2012 and balance Rs 1056 Crore (Industry: Rs 2330 crore) during current financial year (i.e. 2012-13) till date.

Since last price change w.e.f 01.12.11, international oil prices have increased and USD-INR exchange rate has shown further deterioration. While Indian basket of crude has increased by 3.5% from $109.23/bbl to $113.08/bbl, international MS price has gone up by 14.5% from $108.62/bbl to $124.42/bbl. USD-INR exchange rate has deteriorated 3.2% from Rs 51.50/$ to Rs 53.17/$. The combined effect of changes in international MS price and exchange rate has resulted in an increase in under-recovery since last price change. However, due to declining international MS prices during the current fiscal, under-recovery has shown a downward trend from Rs. 8.04/litre in April’12 2nd fortnight to Rs 7.17/litre during May’12 1st fortnight, and further to Rs 6.28/litre during current fortnight.

Given the losses being incurred, the Company is compelled to increase the price of MS by Rs.6.28 per litre (excluding VAT / Sales Tax) w.e.f. mid-night of 23/24.5.12. This excludes losses already suffered till date during current financial year, i.e., 2012-13, which would require an additional increase of around Rs 1.50/ litre in selling price of MS for balance part of the year.

The above increase of Rs.6.28 per litre is exclusive of Sales Tax / VAT. Given that the rate of Sales Tax / VAT varies from 15% to 33% in the States, additional sales tax of Rs.0.94 to Rs 2.07 per litre shall be added to the aforesaid increase. This shall be over and above the existing Sales Tax of Rs.10.30 per litre to Rs.18.74 per litre already being levied in the existing MS prices.

In addition, OMCs are suffering high level of under-recoveries on three sensitive petroleum products, namely HSD, SKO (PDS) and LPG (Dom). Last revision in selling price of sensitive products was undertaken w.e.f 25 June’11. As compared with last price change, current under-recovery on HSD has gone up from Rs 6.13/litre to Rs 13.64/litre, for SKO (PDS) from Rs 24.16/litre to Rs 31.41/litre and for LPG (Dom) from Rs 331.13/cyl to Rs 479.00/cyl as on 16 May’12. At these rates, it is estimated that under-recovery on sale of sensitive products during 2012-13 shall be around Rs 100000 Crore (Industry: Rs 186000 crore).

The international MS prices and exchange rates are being monitored closely by the Corporation and impact of changes in these factors shall be considered in determining the selling price of MS in future.

Click here to view MS RSP at 4 Metros

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The term User shall refer to the user who is browsing the site. The term IndianOil shall refer to Indian Oil Corporation Limited. The term Site refers to www.iocl.com owned and monitored by IndianOil.
By using the Site, you agree to follow and be bound by the following terms and conditions concerning your use of the Site. IndianOil may revise the Terms of Use at any time without notice to you. Areas of the Site may have different terms of use posted. If there is a conflict between the Terms of Use and terms of use posted for a specific area of the Site, the latter shall have precedence with respect to your use of that area of the Site.
ndianOil may terminate User's access at any time for any reason. The provisions regarding to disclaimer of warranty, accuracy of information, and indemnification shall survive such termination. IndianOil may monitor access to the Site.
All content present on this site is the exclusive property of IndianOil. The software, text, images, graphics, video and audio used on this site belong to IndianOil. No material from this site may be copied, modified, reproduced, republished, uploaded, transmitted, posted or distributed in any form without prior written permission from IndianOil. All rights not expressly granted herein are reserved. Unauthorized use of the materials appearing on this site may violate copyright, trademark and other applicable laws, and could result in criminal or civil penalties. IndianOil is a registered trademark of Indian Oil Corporation Ltd. This trademark may not be used in any manner without prior written consent from IndianOil.
IndianOil does not make any warranties, express or implied, including, without limitation, those of merchantability and fitness for a particular purpose, with respect to any information, data, statements or products made available on the Site.
The Site, and all content, materials, information, software, products and services provided on the Site, are provided on an "as is" and "as available" basis. IndianOil expressly disclaims all warranties of any kind, whether express or implied, including, but not limited to, the implied warranties of merchantability, fitness for a particular purpose and non-infringement.
IndianOil shall have no responsibility for any damage to User's computer system or loss of data that results from the download of any content, materials, information from the Site.
IndianOil may change or discontinue any aspect of its website at any time, including, its content or features. IndianOil reserves the right to change the terms and conditions applicable to use of the Site. Such changes shall be effective immediately upon notice, which shall be placed on the Site.
In no event will IndianOil be liable for damages of any kind, including without limitation, direct, incidental or consequential damages (including, but not limited to, damages for lost profits, business interruption and loss of programs or information) arising out of the use of or inability to use IndianOil's website, or any information provided on the website, or in the Products any claim attributable to errors, omissions or other inaccuracies in the Product or interpretations thereof. Some jurisdictions do not allow the limitation or exclusion of liability. Accordingly, some of the above limitations may not apply to the User.
User agrees to indemnify, defend and hold IndianOil harmless from and against all losses, expenses, damages and costs, including reasonable attorneys' fees, arising out of or relating to any misuse by the User of the content and services provided on the Site.
The information contained in the Site has been obtained from sources believed to be reliable. IndianOil disclaims all warranties as to the accuracy, completeness or adequacy of such information.
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