Petrol likely to be dearer by Rs 2

State-owned oil companies are set to revise petrol prices on Monday and the revision is expected to be upward, affecting a hike of close to Rs 2 per litre.

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The revision, which is already delayed by a fortnight, comes in the wake of a depreciating rupee, which came close to 53 per dollar in the past weeks.

An official from a state-run oil firm told Deccan Herald that the revision, which as per the practice could have been taken up tonight, had been postponed till Monday.

After the rupee depreciation to 53 per dollar, it has become imperative for the OMCs to hike prices by Rs 2 to meet the losses. The oil firms had, at the last review on December 16, decided not to burden the consumers with about Rs 1 per litre hike in petrol price needed at that time, as they felt Reserve Bank's intervention might help arrest the fall in rupee’s value.

The rate change may require a political clearance this time too, as Assembly elections in five crucial states, including Uttar Pradesh and Punjab, have been announced.

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