• Fuel price hike: A typo that could have cost Rs 18 crore a day

    On Wednesday, a faux pas by the Indian Oil Corporation (IOC) led to an embarrassment of sorts after a ‘technical glitch’ on its website wrongly notified that petrol and diesel prices have been cut by 60 paise and 59 paise respectively, before it was found out that the reduction actually was of 1 paise per litre on both the petro products.

    The country’s largest fuel retailer later said in a statement, “There was a technical glitch in posting the selling prices of petrol and diesel. The selling prices of petrol and diesel with effect from May 30, 2018 have been rectified. Today, there is a minor reduction in fuel prices.”

    But what does 1 paisa really add up to for India and the oil companies? Here’s a look at some numbers:

    India consumed 7.6 crore litres of petrol a day in April. Thus, at 1 paisa a litre, India saves Rs 7.6 lakh a day on petrol.

    Similarly, India consumed 23.85 crore litres of diesel a day in April and the country saves Rs 23.85 lakh a day, courtesy a 1 paisa per litre cut on diesel.

    The typo or the ‘technical glitch’ as IOC likes to put it, if had gone unnoticed, would have cost oil companies Rs 18.5 crore a day (Rs 14 crore for diesel and Rs 4.5 crore for petrol).

    Meanwhile, on Wednesday evening Kerala took the 1 paisa cue and turned it into a real Re 1 a litre relief for its people.

    Wednesday’s cut albeit marginal, was the first time in 16 days that prices were cut since May 14 when fuel retailers ended a 19-day pre-Karnataka poll hiatus to pass on a spike in global oil rates.

    Petrol price was on Thursday has been cut by 7 paise a litre and diesel by 5 paise.

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