Speaking to FE, senior company officials from Indian Oil Corporation (IOC), Bharat Petroleum Corpora- tion Ltd (BPCL) and Hindustan Petroleum Corp- oration Ltd (HPCL) confirmed the move.
However, it still remains to be seen whether the embattled petroleum minister, Ram Naik will allow the oil companies to raise the prices of petrol and diesel.
Giving details, senior oil company officials said that the prices of diesel and petrol as also that of crude in the global oil markets have firmed up in the last 14 days.
Going by the actual calculations i.e after taking into account the movement of petrol and diesel in the international (Arab Gulf) markets in the last 14 days, the exact increase in case of diesel works out to be 54 paise per litre while that in case of petrol it is around 20 paise per litre, revealed a top oil company official.
However, as it will be difficult to increase the prices of diesel by 50 paise a litre in one go, we are planning an increase of around 30 paise a litre in both the fuels. A in-principle clearance is still required from the nodal ministry before it is actually implemented, the official added. t is significant to note here that the price of Indian basket of crude had touched a high of $28.76 a barrel on August 22.
The average crude oil price for the last 14 days has been $26.38 a barrel, which is $1.38 a barrel higher than the $25 a barrel average fixed by the government.
As against this, the average of Indian basket crude for the period 30th July to 12th Aug stood at $24.92 a barrel.
The price of a barrel of this basket stood at $26.36 on Aug 18, $26.49 on Aug 19, $26.53 on Aug 20, $26.68 on Aug 21, $28.76 on Aug 22, $28.47 on Aug 23, $26.66 on Aug 26, $28.81 on Aug 27, $26.42 on Aug 28.
Considering that the oil companies are currently going by the product import parity basis for increasing the prices of petrol and diesel, it may be mentioned here that the average price of diesel (with 0.5 per cent sulphur content) has been $27.19 per barrel in the international oil market.
Currently, the prices of diesel in Delhi is Rs 18.05 a litre while that of petrol is Rs 29 a litre.
If the proposal of the oil companies to increase the prices of products is cleared by the ministry, the new prices of petrol in Delhi will be Rs 18.35 per litre in case of diesel and Rs 29.30 a litre for petrol.