State-run Oil Marketing Companies (OMCs) deny the allegation that they form cartel while changing petrol or diesel prices.
Competition Commission of India (CCI) is studying the allegation and is expected to come out with its observation in the coming months.
A top official of the state-run OMC Indian Oil Corporation denied allegation that fuel retailers form cartel. There is always a difference in pricing, but the gap will be small as all the companies are importing crude oil, the official is quoted as saying in a media.
OMCs do take the decision about pricing, but it is up to individual companies to decide when they want to implement it, the official has reportedly said.
For the last two years, OMCs are allowed to determine petrol prices based on market dynamics. The government recently allowed these firms to raise diesel prices by a small amount every month.
After the increase of 45 paise a litre (excluding taxes) effective January 17 on diesel, the fuel is currently sold at Rs 9.15 per litre below cost.
Normally, prices of diesel and petrol are reviewed every fortnight, although this has changed for petrol, as it is now a deregulated product. Recently, IOC decided to revise petrol prices as and when required, the official said.
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