<p>The Centre on Saturday hiked prices of petrol and diesel by Rs 2.35 and 50 paise per litre respectively owing to falling rupee value and rising import costs. <br /><br />Oil companies also increased commercial and non-subsidised LPG prices but price of subsidised LPG remained untouched. However, consumers may have to face one more round of steep hikes, especially of kerosene, subsidised LPG and diesel soon after the Parliament session next week. <br /><br />In Bangalore, petrol price went up from Rs 78.12 to Rs 81.21 whereas diesel price was hiked from 55.49 to 56.10.<br /><br />Petroleum Minister M Veerappa Moily has sought the intervention of Prime Minister Manmohan Singh to cut the growing losses of oil companies due to surging oil prices and falling rupee value.<br /><br />The latest hikes in petrol price, sixth in three months, and that of diesel, eighth since January, exclude local sales tax and VAT. The new prices are effective Saturday midnight, the oil companies said.<br /><br />Following the hike, petrol price in Delhi will go up by Rs 2.83 to Rs 74.10 per litre while it will cost Rs 81.57 per litre in Mumbai as against the current rate of Rs 78.61.<br /><br />Since June, petrol price has gone up by a massive Rs 9.17 per litre, excluding VAT and in Delhi, it has gone up by Rs 11.1 per litre after taking into account state tax.<br /><br />In a parallel move, diesel price was hiked by 50 paise, excluding VAT, in line with the January decision of the government allowing oil companies the freedom to raise prices in small doses every month to wipe out mounting losses.<br /><br />Diesel price in Delhi has been hiked by 57 paise to Rs 51.97 per litre while it will cost Rs 58.86 in Mumbai from Sunday against the current value of Rs 58.23 per litre.</p>.<p><br />The oil firms also increased the cost of non-subsidised domestic cooking gas (LPG). The price of non-subsidised LPG in Delhi was hiked by Rs 57.50, to Rs 932.50, per 14.2-kg cylinder.<br /><br />Oil companies in loss<br /><br />As oil companies registered mounting losses, Minister M Veerappa Moily in his letter to Prime Minister Manmohan Singh said that without corrective steps, losses on the sale of subsidised fuel will rise to an unprecedented Rs 1.8 lakh crore. In his detailed letter, the Petroleum Minister said rupee value has dropped from Rs 54.45 against a US dollar in 2012-13 to Rs 68.36, raising the cost of oil import.<br /><br />“If the present position persists, the total under-recovery (revenue loss) would reach to a level of Rs 1.8 lakh crore in the current financial year as compared to Rs 1.61 lakh crore during 2012-13,” he wrote to the prime minister.<br /><br />Moily said a one rupee increase in diesel price will cut loss by Rs 4,522 crore in remainder of current fiscal while a Rs 3 per litre increase would trim losses by Rs 13,565 crore. If rates are raised by a one-time Rs 5 per litre, the losses would be cut to Rs 29,390 crore. The hikes proposed are one-time and are outside monthly revision in rates of 50 paisa happening since January.<br /><br />He said a Rs 50 per cylinder increase in LPG rates would trim cooking gas losses by Rs 2,604 crore. Besides, a possible Rs 2 per litre hike in kerosene price would cut losses by Rs 1,014 crore. The price increases in the three fuels together would bring down governments subsidy outgo to Rs 50,928 crore.</p>
<p>The Centre on Saturday hiked prices of petrol and diesel by Rs 2.35 and 50 paise per litre respectively owing to falling rupee value and rising import costs. <br /><br />Oil companies also increased commercial and non-subsidised LPG prices but price of subsidised LPG remained untouched. However, consumers may have to face one more round of steep hikes, especially of kerosene, subsidised LPG and diesel soon after the Parliament session next week. <br /><br />In Bangalore, petrol price went up from Rs 78.12 to Rs 81.21 whereas diesel price was hiked from 55.49 to 56.10.<br /><br />Petroleum Minister M Veerappa Moily has sought the intervention of Prime Minister Manmohan Singh to cut the growing losses of oil companies due to surging oil prices and falling rupee value.<br /><br />The latest hikes in petrol price, sixth in three months, and that of diesel, eighth since January, exclude local sales tax and VAT. The new prices are effective Saturday midnight, the oil companies said.<br /><br />Following the hike, petrol price in Delhi will go up by Rs 2.83 to Rs 74.10 per litre while it will cost Rs 81.57 per litre in Mumbai as against the current rate of Rs 78.61.<br /><br />Since June, petrol price has gone up by a massive Rs 9.17 per litre, excluding VAT and in Delhi, it has gone up by Rs 11.1 per litre after taking into account state tax.<br /><br />In a parallel move, diesel price was hiked by 50 paise, excluding VAT, in line with the January decision of the government allowing oil companies the freedom to raise prices in small doses every month to wipe out mounting losses.<br /><br />Diesel price in Delhi has been hiked by 57 paise to Rs 51.97 per litre while it will cost Rs 58.86 in Mumbai from Sunday against the current value of Rs 58.23 per litre.</p>.<p><br />The oil firms also increased the cost of non-subsidised domestic cooking gas (LPG). The price of non-subsidised LPG in Delhi was hiked by Rs 57.50, to Rs 932.50, per 14.2-kg cylinder.<br /><br />Oil companies in loss<br /><br />As oil companies registered mounting losses, Minister M Veerappa Moily in his letter to Prime Minister Manmohan Singh said that without corrective steps, losses on the sale of subsidised fuel will rise to an unprecedented Rs 1.8 lakh crore. In his detailed letter, the Petroleum Minister said rupee value has dropped from Rs 54.45 against a US dollar in 2012-13 to Rs 68.36, raising the cost of oil import.<br /><br />“If the present position persists, the total under-recovery (revenue loss) would reach to a level of Rs 1.8 lakh crore in the current financial year as compared to Rs 1.61 lakh crore during 2012-13,” he wrote to the prime minister.<br /><br />Moily said a one rupee increase in diesel price will cut loss by Rs 4,522 crore in remainder of current fiscal while a Rs 3 per litre increase would trim losses by Rs 13,565 crore. If rates are raised by a one-time Rs 5 per litre, the losses would be cut to Rs 29,390 crore. The hikes proposed are one-time and are outside monthly revision in rates of 50 paisa happening since January.<br /><br />He said a Rs 50 per cylinder increase in LPG rates would trim cooking gas losses by Rs 2,604 crore. Besides, a possible Rs 2 per litre hike in kerosene price would cut losses by Rs 1,014 crore. The price increases in the three fuels together would bring down governments subsidy outgo to Rs 50,928 crore.</p>
