Indian Oil Corporation Ltd. has decided to effect the following changes in MS and HSD retail selling prices w.e.f midnight of 15th/16th February'13:
- Selling price of HSD to be revised upward by Rs 0.45/litre (excluding VAT)
- Selling price of MS to be revised upward by Rs 1.50/litre (excluding VAT).
MS prices were last revised downward by Rs. 0.25/litre/litre (excl VAT) on 18th January'13. Since last price change the international oil prices have constantly shown an uptrend. Crude oil price has increased from $109.08/bbl to $ 113.24/bbl, while International MS prices have increased from $119.59/bbl to $128.57/bbl. The INR-USD exchange rate has however improved from Rs.54.78 to Rs.53.43 per USD during the period. The Corporation has been compelled to pass on the increase in MS prices to consumers as the Corporation has already suffered losses on sale of MS so far and trends in international oil market as well as INR-USD exchange rate indicate continued strength. In fact, currently MS prices are hovering around $132.80/bbl. The trends of international oil prices and INR-USD exchange rate shall be closely monitored and the same shall be reflected in future price changes.
HSD prices were last revised upward by Rs.0.45/litre (excl VAT) on 18th Jan'13. As a result, the under-recovery on HSD had correspondingly reduced to Rs.9.15/litre. However, since the last price revision, international HSD prices have also shown continued uptrend. As a result, under-recovery has gone up to Rs.10.72/litre which now, with current upward revision of HSD prices by Rs. 0.45/litre, shall stand reduced to Rs. 10.27/litre.
In addition to loss on sale of HSD, OMCs are also suffering under-recovery on sale of SKO (PDS) of Rs.31.60/litre & LPG (Dom) of Rs.481.00/cyl. Projected under-recovery of the Corporation on three sensitive products is expected to cross Rs.86000 crore and of the Industry beyond Rs.163000 crore during current year.