Author Name: Neha Dhamija
Following a dip in the oil rates in the global market, there are very chances that the Government may cut oil and LPG prices next week. A likely reduction of Rs 10 per litre in petrol, Rs 3 per litre in Diesel and Rs 20 per LPG cylinder can be expected in the coming week.
With the completion of assembly polls today in Rajasthan, there are possibilities that the decision of revising the fuel prices would be taken in the next Cabinet meeting scheduled on December 11 this month.
This is the first occasion in the past three years that the state-run oil companies Bharat Petroleum, Indian Oil and Hindustan Petroleum are selling petrol and diesel at profit margins of Rs 14.89/ litre and Rs 3.03/ litre respectively.
But still they are operating at a loss of Rs 17.26 per litre on the sale of Kerosene through the PDS (Public Distribution System) and Rs 148.32 on the sale of domestic LPG cylinder.
Oil companies are incurring heavy losses on the sale of LPG, so some of the margins on petrol can be utilized to offset the losses on cooking fuel.
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