Petrol becomes cheaper by Rs 2.02 a litre
NEW DELHI: Vayalar Ravi on Saturday became the second Union minister after A K Antony to disapprove of the petrol price hike and asked oil minister Jaipal Reddy to take a “closer look” on the issue before deciding on any further increase even as petrol price was on Saturday cut by Rs 2.02 per litre, a partial rollback of the Rs 7.54 a litre increase effected more than a week ago.
Ravi, in a letter to Reddy, questioned the claims of oil companies that they are incurring huge losses and asked his cabinet colleague to scrutinise the issue in detail.
Defence minister Antony had on Wednesady criticised the hike saying it was “not a correct step” and the oil companies should have shown some “propriety” before taking the decision.
“Apparently, the claim made by oil companies that they are running in loss seems to be untrue. As a matter of fact, the expenditure of oil companies, including salaries, is among the highest in India and there is a perception that funds are being wasted,” Ravi, the overseas Indian affairs minister, said in the letter.
“In this backdrop, I feel a closer scrutiny is needed before deciding on any further increase in oil prices. Instead, a bold look may betaken at reducing the recent hike,” he said.
After the sharp criticism against the hike, the oil marketing companies on Saturday cut petrol price by Rs. 2.02 per litre.
The reduction, a result of fall in international oil prices, will mean that petrol in Delhi will cost Rs 71.16 rpt 71.16 per litre from midnight tonight, as against Rs 73.18 at present.
The decision, flowing out of the fortnightly review by oil marketing companies, came as some relief for consumers battered by double-digit inflation and the May 24 hike which was the steepest ever that came on top of two increases in a year. The May 24 hike had come under sharp attack from all political parties including allies like TMC and DMK and some ministers in the UPA and there was all-round demand for a rollback.
The Left and NDA had on Thursday organised a nationwide strike in protest against the hike.
Last week’s steep Rs 7.54 per litre hike was done considering an average gasoline price of USD 124.37 per barrel and a rupee-dollar exchange rate of Rs 53.17 in the first fortnight of May. Gasoline price have since fallen to USD 115.77 per barrel in the second fortnight but rupee-dollar rate has worsened to Rs 54.96 to a US dollar during the period.The fall meant that petrol rates be cut by Rs 1.68 per litre, excluding local sales tax or VAT. In Delhi, after including 20 per cent VAT, the reduction will be Rs 2.02 a litre.