Petrol price hiked by Rs 1.82 a litre MUMBAI: June 28 State-owned oil marketing companies on Friday announced an increase of Rs 1.82 per litre of petrol, excluding state levies and taxes with effect from Friday midnight, making it third successive increase in petrol prices as Indian rupee continued its free fall against the US dollar, making the imports costlier. The hike is in spite of the fact that Indian basket of crude oil has fallen to $100 .5 on June 27 per barrel compared to price $101.07 on June 15, when the petrol prices were last revised. However, the Indian rupee breached the psychological level of 60 against the US dollar compared to the average price of 57.44 till June 15. In rupee terms, the crude oil price increased substantially reaching Rs 6089 per barrel on June 27 as compared to average price of Rs 5805 till June 15. "Since last price change, the downwards slide of rupee has continued and the exchange rate has deteriorated from Rs. 57.08 per dollar to Rs 58.94 per dollar during the fortnight. Further, international petrol prices have also increased from $113.84 per barrel to $115.29 per barrel since last price change. The combined impact of both these factors, predominantly of rupee depreciation, has warranted the increase in petrol prices by Rs 1.82 per litre excluding VAT," said an Indian oil Statement on Friday. A litre of petrol will now cost Rs 68.58 in Delhi, Rs 76.10 in Kolkata, Rs 76.90 in Mumbai and Rs 71.71 in Chennai. State-owned marketers like Hindustan Petroleum Corporation (HPCL), Bharat Petroleum Corporation (BPCL) and private retailers like Reliance Industries (RIL), Essar Oil and Shell India are likely to follow the suit. The hike, which is effective from midnight, is excluding local sales tax or value added tax (VAT) and actual increase for consumers will be higher. Oil firms had from June 15 hiked prices by Rs 2 excluding VAT and before that 75 paisa from June 1 onwards. The sliding rupee has resulted in further increase in under-recovery on sensitive products also. Currently, OMCs are suffering under-recovery on sale of diesel of Rs 8.60 per litre, kerosene of Rs 30.53 per litre and cooking gas of Rs 368.50 per cylinder. Estimated under-recovery of the IOC on sale of these three sensitive products is expected to be around Rs 63,000 for the fiscal 2013-14 and the industry estimated to lose at around Rs 1,18,000 crore.
Posted on: Fri, 28 Jun 2013 18:48:11 +0000
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