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CCI probes cartelisation in petrol pricing

CCI probes cartelisation in petrol pricing
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Anti-trust watchdog Competition Commission of India (CCI) has reportedly started probing the alleged cartelisation in the price of petrol in the domestic market by state-run oil marketing companies (OMCs).

Suspicion of cartelisation in petrol pricing arose as state-run OMCs usually reduce or hike price of the fuel in unison. The Director General, the investigation arm of the CCI is investigating the matter.

Earlier, during its investigation with the union petroleum ministry, the latter said it did not have any role to play in the pricing of petrol as it is a de-regulated product.

It may be noted that pricing of petrol was de-regulated in 2010, while diesel price was partially de-controlled in January 2013. Price of kerosene and cooking gas are still controlled by the government.

Union ministry is learnt to have clarified that petrol pricing is done on the basis of some pricing formula which is not fixed by the government.

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