With the rupee weakening against the dollar, oil companies have proposed increasing the price of this auto fuel by about INR 1 per litre from January 1. Sources, however said that the move needs clearance from the government as it comes ahead of assembly elections in five states, including Uttar Pradesh and Punjab.

A top executive of a state owned oil company on condition of anonymity told HT that told HT “While we (oil companies) are free to revise the price of petrol, there is an unwritten rule that the final decision vests with the government. An informal nod is required from the petroleum ministry, which is our majority shareholder.”

State owned oil marketing firms Indian Oil Corporation, Hindustan Petroleum Corporation and Bharat Petroleum Corporation use the fortnightly average of the benchmark oil price and exchange rate to revise retail rates on the 1st and 16th every month.

(Sourced from HT)