Only yseterday, we reported about Maruti Suzuki India Ltd. increasing the dealer’s margins on petrol cars to deal with the dropping sales of gasoline powered cars. Now, the situation seems to be all set to get worse for both manufacturers and owners of petrol engined vehicles. The Economic Times reports that petrol prices are expected to rise by about Rs 3 per litre post upcoming election in Uttar Pradesh.
The same report also reads that high officials in leading Indian oil companies say that the gas rates have been unchanged since past two months despite increasing. The rates have been untouched all this while due to Govt. order to keep them constant until the elections.
So far, the oil companies have been suffering the loses in the oil trade but the petrol rates need to be revised sooner than later. IOC chairman RS Butola said,”The company can’t sustain for long. We will be forced to raise petrol prices if (international) prices prevail at this level.”
The price of Brent crude oil has shot past $118 a barrel and is almost at a six-month high. Butola said petrol prices currently almost Rs 3 less than they should be.