The state-run oil refineries to still remain under financial strain
New Delhi (November 16, 2011): The Wednesday night was special to common man as the petrol prices fell for the first time after deregulation of the petrol. The slash of the petrol prices by 3.2 % brought fall in the prices by Rs 2.22 per litre in Delhi and Rs. 2.34 per litre in Mumbai. The cut in the petrol prices is more than the hike in petrol prices by Rs. 1.8 per litre earlier this month.
According to HT business – “The cut in petrol prices, its quantum and the urgency at which prices were slashed ahead of the Parliament session followed an informal diktat from the government, which was under severe political pressure from its allies ahead of several state elections,” said a former oil company chief. The chief had asked for not mentioning his name. This signifies that though the oil companies are under strain financially, they had to cut the prices of the petrol due to political pressure. The meeting conducted on November 15 to take a final stand on reduction of the petrol prices did prove to be a sigh of relief for petrol consumers.
This fall in petrol prices, irrespective of any reason, has really benefitted the common man leaving the oil companies to incur losses. The further fall in prices of crude oil and petrol on global platform may reduce some burden of oil companies, though it won’t be the most suitable solution. Now, the most important thing is to see for how long the prices of petrol will not hike.
