Reliance to hike retail petrol price

Vol 10, PW 17 (14 Dec 06) News in Brief

Reliance Industries is expected to raise the price of petrol and diesel sold at its petrol pumps as part of strategy to concentrate on exports.

PETROWATCH learns an internal exercise is underway within Reliance to decide by how much to raise prices. Unclear is when the price hike will come, or by how much, but it could come as early this week.

An industry source tells us the hike could see Reliance add between Rs1 and Rs2 on to the price of a litre of petrol or diesel. What is behind this rise Reliance, it seems, wants to dissuade domestic retail sales of petrol and diesel because it is getting better prices from exports.

Under existing oil ministry rules, Reliance is obliged to sell a certain portion of its production in the domestic market. Reliance was one of the first private sector companies to begin retailing petrol and diesel when the sector opened up in April 2002.

It made its mark by selling petrol and diesel at a sharp discount to state-owned companies.