News Release Details

Press Release on MS Prices
New Delhi   28-Jun-2012

It has been decided to revise MS prices downwards by Rs. 2.46/litre (excluding state levies) w.e.f midnight of 28-29 June, 2012.

The downward revision shall vary from Rs. 2.46/litre to Rs. 3.22/litre (including State levies) depending upon the State taxes. In the state of Delhi, the price decrease will be Rs. 2.46/litre as the impact of State tax shall be nil on reduction till the price levels as on 23rd May'12 as per VAT exemption order dated 16th June 2012 of Delhi Govt. The decrease in other States will vary depending upon the respective rates of State VAT / Sales Tax.

 Existing and Revised selling prices for metros are given below :

 

 

New Delhi

Mumbai

Chennai

Kolkata

Hyderabad

Bengaluru

Proposed RSP

Rs./litre

67.78

73.35

72.27

72.74

74.89

76.39

Current RSP

Rs./litre

70.24

76.45

75.40

75.81

78.11

79.61

Reduction

Rs./litre

2.46

3.10

3.13

3.07

3.22

3.22



During current fiscal, the Corporation has already accumulated losses of Rs 1053 crore (Industry: Rs 2323 crore) on MS sales during the first two months due to inability of OMCs to revise MS selling prices in line with high level of international oil prices & eroded  USD-INR exchange rate prevailing during that period.


In addition, OMCs are suffering high level of under-recoveries on the three sensitive petroleum products, namely HSD, SKO (PDS) and LPG (Dom).  Last revision in selling price of sensitive products was undertaken in June'11.  As compared with last price change, current under-recovery on HSD has gone up from Rs.6.13 per litre to Rs.10.20 per litre, for SKO (PDS) from Rs.24.16 per litre to Rs.30.53 per litre and for LPG (Dom) from Rs.331.13 per cylinder to Rs.396.00 per cylinder as on 16th June'12.  At these rates, it is estimated that under-recovery on sale of sensitive products during 2012-13 shall be around Rs.83000 crore (Industry: Rs.151000 crore).

OMCs continue to closely monitor the international oil prices and the evolving scenario in USD-INR exchange rates to assess their potential impact on selling prices in future. It may be noted that prevailing global economic conditions have had an adverse impact on world MS demand resulting in MS margins over crude oil prices dipping to unsustainable lows. Therefore, price differential of crude and MS shall also be under a close watch in the coming days.