NEW DELHI: State firms will review petrol prices every month but rates are unlikely to change in July if international prices and the rupee's exchange rate remains at current levels, a company official said.
India freed petrol prices from government controls and raised prices of diesel, cooking gas and kerosene on June 25, giving state-run firms like Indian Oil Corp, Hindustan Petroleum Corp Ltd and Bharat Petroleum Corp Ltd the freedom to fix retail prices for petrol.
State firms will review petrol prices every month but there would be no fixed date to change prices, S V Narasimhan, director for finance at India Oil Corp told reporters after a meeting between top officials of state-run firms and the oil ministry on Wednesday.
He said all state firms would sell petrol at the same rate for three months but this may change depending on the competition in the market.
"(Whether) the mechanism has to be different or not will be decided after three months based on competition. There is no fixed date for revision," he said.
State firms face competition from Reliance Industries Ltd and Essar Oil. These firms had captured about 15 per cent of the market five years ago but they lost out as state firms started selling subsidised fuel when global prices soared.
He said prices were unlikely to change this month if the current exchange rate of the rupee and international prices remain at current levels.
"There is no need to change the petrol prices," he said.
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