As Crude Oil Prices Soar, Centre Asks State-Owned Oil Cos To Not Hike Prices

In the wake of global crude prices reaching a three-year high, state-run oil firms have asked by the Government to not increase retail prices and absorb some of the losses, reports Bloomberg. Indian Oil Corporation (IOCL), Bharat Petroleum Corporation (BPCL) and Hindustan Petroleum Corporation (HPCL) will bear up to Re 1 per litre on the sale of petrol and diesel.

India imports over 80 per cent of its annual crude oil requirements. Union Minister for Petroleum and Natural Gas Dharmendra Pradhan recently said that in order to manage its finances better, the country would like to see crude prices at $50 per barrel.

Excise duty cuts are unlikely due to a stagnation in collections of Goods and Services Tax (GST). The ministry has been tasked with a plan to prepare subsidy payments in case oil prices escalate even further.

Global crude prices hit rock bottom rates in 2016 at $27.1 per barrel but has since recovered, trading at around $70 now.