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06-22-2012, 08:52 PM #1
Tumbling rupee stalls petrol price cutAt a time when crude oil prices have fallen dramatically to an 18-month low in the international market and petrol prices should have been cut by around Rs. 2 to Rs. 2.50 per litre, the continued volatility in the value of rupee against the dollar has hampered extending this relief in the form of reducing retail petrol prices across the country.
The continued downslide in the value of rupee to an all-time low of Rs. 57.30 to a U.S. dollar has made the imports very costly wiping out the gains of falling crude prices and forcing the Oil Marketing Companies (OMCs) to adopt a wait and watch policy. “The oil companies are fully cognisant of facts. They are watching the volatility in rupee and global crude oil prices. Very soon they will take a decision,” Petroleum and Natural Gas Minister, Jaipal Reddy told journalists here.
he OMCs review the petrol prices on the 1st and 16th of every month based on average imported cost and forex rates of the previous fortnight. However, they skipped the review this time around on June 16 and decided to stick with the present prices. “There is lot of volatility in prices of crude oil and value of rupee. There is double volatility. We are relieved at the fact that price of crude oil have eased. But this has been upset by decrease in value of rupee. We are watching the situation with keen interest and we
are watching it on a day to day basis. For a nation that is 76 per cent dependent on imports to meet its requirements, value of rupee becomes very important,’’ Mr. Reddy remarked....being a human...