Indian Oil Corporation (IOC), Reliance Petroleum and Mangalore Refinery and Petrochemicals Ltd (MRPL) have condemned the central government’s unfavourable decision on retail price of fuel.
Speaking to Indiaretailing, a Reliance spokesperson said, “Though the prices of fuel in our outlets are higher, the recurring losses compelled us to close many of them.”
The company wants the government to rehash its policies and bring in some better changes for fuel retailers.
A similar statement came from Indian Oil Corporation as it said that the government should take stern steps to tackle the losses. “The government is just looking to make the public happy, but does not seem to notice our losses,” an IOC official complained.
Mangalore Refinery and Petrochemicals Ltd, the latest entrant in the fuel retailing business with an outlet in Karnataka, said that this move by the government will not affect them much as for now they operate one outlet only. However, the company wants some reforms to be made in the government’s policy, so that the business of fuel retailing flourishes.
The industry reactions were taken after the union minister for petroleum and natural gas, Murli Deora, issued a statement saying, “If we raise the retail price of fuel, it will be minimal.”
According to experts, raising fuel prices involves the risk of prompting protests from communist allies, who are part of the ruling Congress-led coalition at the centre.
India’s last fuel price increase was in June 2006, when retail petrol prices went up by 9.2 per cent and diesel by 6.6 per cent.
– Satrajit Sen
