The government, last month freed its control over petrol prices resulting in a hike of Rs 3.50 per litre, but the modalities of further price amendments were left to the industry to decide.
Oil marketing companies met senior officials of the Oil Ministry today. At the meeting, it was decided that there will be no price increase in petrol as of now, reports CNBC-TV18's Rituparna Bhuyan. It was decided that all oil marketing companies would uniformly revise prices. Multi-revision of petrol prices could be seen.
With this, state-owned oil firms have opted to revise petrol prices on a monthly basis with all PSUs hiking or reducing prices simultaneously.
The three major oil PSUs will increase or decrease prices uniformly. This will obviously depend on the crude oil prices that are prevalent at the end of the month or at the beginning of the month. The timing has not been decided on when they will revise the prices.
The third important point that has come out of the meeting is that this process that has been decided today will be continued for only three months and the Oil Minister will take a call on this process after three months.
The Indian Oil Corporation (IOC) will not raise the prices of petrol as of now, says its Director of Finance SV Narasimhan. However, he adds that every dollar rise in crude hurts petrol and diesel by 35 paise.
