Petrol prices are set to be hiked on June 1. CNBC-TV18's Nayantara Rai, quoting sources, reports that a petrol price hike of Re 1 will be announced once OMCs hold a review meeting on May 31.
The petrol price hike of Re 1 a litre will mainly due to the rupee which has been depreciating all month picking up steam in the last fortnight. The rupee touched a 10-month low and that is perhaps going to be one of the major reasons for the OMCs to hike the price of petrol.
This will be the first price-hike in three months' time. Petrol prices were last increased on March 1. Since then, petrol prices have come down steadily in a reaction to falling internationally crude prices. Now, because of the depreciation in the rupee, consumers may just have to pay more for petrol.
Sources also indicate that the monthly revision of diesel prices, which is normally 45 paise a litre, will be on track in June and could be announced in June.