Petrol prices hiked by 75p/ltr; diesel up 50p/ltr

Moneycontrol Bureau

Petrol price is hiked by 75 paise per litre and diesel price is hiked by 50 paise per litre with effect from midnight today following sharp depreciation in rupee, Indian Oil Corp announced. 

The rupee hit a 10-month low making oil imports costlier for oil marketing companies. This is the first petrol price hike in last three months.  While international oil prices have softened, the rupee has depreciated against the US currency to Rs 56.50 per dollar, about Rs two lower than the rate at the last revision in March.

Petrol prices were last increased on March 1. Since then, petrol prices have been cut four times on falling global oil prices. Petrol prices were cut by Rs three per litre on May 1, Rs 1.20 on April 16, Re one on April 1 and Rs 2.40 on March 16.

Diesel price was last hiked on May 11, by 90 paisa a litre after the companies skipped raising rates in April to avoid troubles for the government during the Budget session of Parliament. This was the fifth diesel price hike since the government deregulated diesel price in January. Despite these previous prices hikes oil firms are losing Rs 4.87 per litre, IOC said.

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Apart from diesel, oil marketing companies continue to suffer under-recovery on sale of kerosene of Rs 27.75 per litre and LPG of Rs 334.50 per cylinder, IOC said.

India’s three state-owned fuel retailers IOC, Bharat Petroleum Corp and Hindustan Petroleum Corp tend to move their prices together.

LPG price cut

OMCs have also cut price of non-subsidised LPG or cooking gas price by Rs 45 per bottle. The government has currently capped the number of subsidised LPG cylinders at nine per household. Non-subsidised domestic LPG in Delhi will now cost Rs 802 per 14.2-kg cylinder as against Rs 847 currently.

Oil firms calculate the desired retail price on 1st and 16th of every month based on average imported oil price on the previous fortnight.

(With inputs from PTI)