Date:02/03/2007 URL: http://www.thehindubusinessline.com/2007/03/02/stories/2007030207050300.htm

No change in RIL's petro prices

Our Bureau

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Kolkata March 1 The proposed excise duty reduction will not bring about any revision in the pricing of petrol and diesel at Reliance Industries outlets.

In other words, fuel sold by RIL outlets in the North-Eastern States, West Bengal, Bihar, Chattisgarh, Punjab, Uttarakhand, Himachal Pradesh and parts of Madhya Pradesh and Maharashtra will continue to be dearer by approximately Re 1 compared to the PSU outlets.

According to company sources, the excise cut amounts to a benefit of merely 50 paise per litre and is insufficient to be passed on.

"We have revised prices to PSU levels in larger parts of the country, covering 80-85 per cent of the total outlets, in February. Any further revision at this juncture will increase our losses in fuel retailing business," a company official told Business Line.

RIL has 1,430 outlets in the country. The company expects a loss of Rs 1,000-1,500 crore in fuel retailing during 2006-07.