NEW DELHI -- India's oil marketing companies are in talks to raise gasoline prices and may effect a price increase by Nov. 15, Hindustan Petroleum Corp.'s finance director said Tuesday.
"We are losing about 1.50 rupees per liter [on gasoline sales] and to cover it up, because sales taxes have to be taken in, the price hike should be of the order of 1.82 rupees per liter," Bhaswar Mukherjee said at a news conference held to announce the company's quarterly results.
India controls prices of diesel and cooking fuels. But the three state-run fuel retailers--Hindustan Petroleum, Bharat Petroleum Corp. and Indian Oil Corp.--are permitted to change gasoline prices in-line with market rates.
The retailers last raised gasoline prices effective Sept. 16, their third price increase since January.
Gasoline currently sells at 66.84 rupees ($1.4) per liter in New Delhi. Prices vary across India due to local taxes.
Mr. Mukherjee said they are considering a price increase again as crude oil prices have risen and the Indian rupee has fallen against the dollar.
India meets four-fifths of its crude oil requirement through imports. The price for the Indian basket of crude oil, which averaged $103.63 a barrel in the first fortnight of October, rose to $106.65 Monday, according to latest data available data on oil ministry's website.
The rupee has depreciated about 11% against dollar since April.
"We are in discussions over gasoline prices," Bharat Petroleum's Finance Director S. Varadrajan said over telephone, adding that there isn't any time frame to raise the price.
Indian Oil's finance director, P.K. Goyal, couldn't be contacted immediately.
Write to Rakesh Sharma at rakesh.sharma@dowjones.com and Eric Yep at eric.yep@dowjones.com
