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Oil PSUs plan APM of their own

Pradeep Puri

The public sector oil companies have joined hands to continue with the administered pricing mechanism in the retail sector through the back door after it is officially dismantled on April 1.

The oil PSUs have decided to have uniform prices for petrol and diesel at their retail outlets till private players enter the market.

The companies have decided to meet once every month to review the retail prices of auto fuels.

Prices decided will be effective for one month till the next review. These, however, will vary from state to state depending upon local taxes.

Industry sources, however, say that in case a dealer decides to sell products at lower prices by passing on a part of his commission to consumers, he can always do so without attracting any penalty from the regulator. The latter will intervene only if a dealer charges a high price and indulges in profiteering.

The real competition, however, is expected only after the private sector enters the market, when the single-price norm is bound to get dismantled.

But, a comfortable presence of the private sector in the market will take at least another two years unless it manages to bag at least one of the two oil PSUs up for divestment during the next fiscal-Hindustan Petroleum Corporation Limited and Bharat Petroleum Corporation Limited.

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