Another Fuel Price Hike!

Dear bikers, time to fill up your bike’s fuel tank. Yes, fuel price is gotta go still up again. Now, I understand what the term ‘Skyrocketing ’actually means.

Another fuel price hike on cards in India as country’s public sector oil marketing companies are considering raising petrol prices by as much as INR 3 per litre. According to reports the hike could be announced on 15 May 2011 during the fortnightly review of prices.

In India, Public sector oil companies have the freedom to revise petrol price in tandem with international crude. But the government, which holds majority stake in the companies, had reportedly told them to hold the price line since January in view of the state polls.

Indian government had in June last year freed petrol pricing from its control, and state-run firms on seven occasions had changed rates in line with international prices before deciding in the second half of January to freeze rates.

A hike in petrol prices will boost the finances of state-run firms since crude oil prices have soared to above $110 per barrel in the international market. US crude futures were down $1.12 or 1% at $111.16 a barrel on 26 April 2011. These petrol companies are losing Rs 7.50 on every litre sold, and when you accumulate the heavier losses from the subsidies on diesel and LPG, the losses run into thousands of crores every month. The fuel’s price has been steadily increased by Rs 10 over the last seven months, an astonishing 22 per cent increase!

State-owned refiner Indian Oil Corporation today said petrol prices could be hiked soon after the assembly polls in five states were over. The polls are for electing governments in Bengal, Tamil Nadu, Assam, Kerala and Puducherry. Counting of votes in all the five states are on May 13.

One side, we find powerful sportbikes entering India. On the contrary, I find the day pretty close where we are gonna pay hundreds of bucks for a litre of petrol. I don’t know what else to say except ‘Let God Save Us!’.

Author –