Oil company finds a way to keep petrol prices low – Times of India
The oil company found a way in India’s petrol market.
The oil giant said it has a pilot project in the state of Tamil Nadu where it has sold its petrol to petrol dealers for a fraction of the price that it sells it to consumers.
“We are selling the petrol to dealers at a fraction, to the extent of around 1.25 to 1.50 per cent discount on the price of petrol,” Nalita Kulkarni, president of Oil and Natural Gas Corporation of India, told reporters on Thursday.
It said the project is currently in the final stages of implementation.
The petrol dealer, however, said the petrol was priced at Rs.1.70 per litre and would be sold at Rs 1.20 per litres.
Kulkarna said the company has started selling petrol at Rs 2.50 a litre, which is cheaper than the price on sale.
As part of the pilot project, the company is also selling the product at Rs 3.25 a litres, which will come in handy for motorists when they buy petrol at a discounted price.
India has a petrol shortage and a massive price hike has hit petrol prices across the country.
India’s petrol prices have been rising in recent weeks after Prime Minister Narendra Modi announced a hike of Rs 4.50 in the country’s petrol price on Wednesday.
According to the Petroleum and Natural Products Regulatory Authority (PNPA), petrol prices are expected to reach Rs 5.30 per litle by the end of next month.