India’s state-run retailers in constant dialogue with government

The Dow Jones reported that R.K. Singh, chairman of Bharat Petroleum Corporation, said in an interview that India’s state-run fuel retailers are in constant dialogue with the federal government regarding the issue of raising gasoline prices. “We have to raise prices in the next few days,” Singh said in a television interview. “It is a question of our survival.” Singh explained that fuel retailers are losing Rs7.75 per (US$0.14) liter on gasoline sales, but in spite of this, the retailers will most probably be denied the privilege of raising prices by more than Rs7 (US$0.13) per liter. Although federal policies give state-run companies the option to raise the price of gasoline in line with international rates, the government’s interests affect their decisions. Because of political constraints, BPCL, Indian Oil Corporation and Hindustan Petroleum Corporation have not been able to raise gasoline prices since December, despite several increases in international crude oil prices. (April 4, 2012)