Oil firms go for petrol price hike again

Increase follows two rounds of cuts in the last one month

Oil firms go for petrol price hike again

The state-owned oil companies on Monday announced another hike in petrol prices, by a minimum of 70 paise per litre, excluding state levies, citing surge in international oil prices and depreciation of the Indian rupee against the US dollar.

The hike will come into effect from Monday midnight. “As a consequence of the said revision, increase in selling price shall vary from Rs 0.70 per litre to Rs 0.91 per litre depending upon the state taxes,” the oil companies said.

Petrol will now cost Rs 68.48 per litre in Delhi, Rs 77.30 in Bangalore, Rs 74.23 in Mumbai, Rs 73.16 in Chennai, Rs 75.80 in Hyderabad and Rs 73.61 in Kolkata. The price in Delhi will go up by 70 paise, while in Bangalore and Hyderabad, the hike will be 91 paise.

In Mumbai, petrol will cost 88 paise more, while in Chennai and Kolkata, the prices will go up by 89 paise and 87 paise respectively. Until now, a litre of petrol cost Rs 67.78 in Delhi, Rs 76.39 in Bangalore, Rs 74.89 in Hyderabad, Rs 72.27 in Chennai, Rs 73.35 in Mumbai and Rs 72.74 in Kolkata.

“The price revision in other states will vary depending upon the respective rates of state VAT or sales tax,” Indian Oil said. The hike follows two rounds of reductions  in the last one month. The prices were reduced by Rs 2.02 per litre on June 3 and Rs 2.46 a litre on June 29.

Fresh revision

“The (fresh) revision (in petrol prices) has been necessitated due to increasing international oil prices and movement in INR-USD exchange rate,” the oil companies said.

Average price of Indian basket of crude is $ 101.28 per barrel while international MS price is $ 111.59 a barrel. The value of rupee is 55.36 against a USD. “At these levels, IOC is incurring losses of about Rs 1.41 per litre on MS sales in the domestic market.

However, as the price movement is quite volatile, it has been decided that an increase of Rs. 0.70/ litre (excluding state levies) may be effected at this juncture and the situation watched for some time depending upon which a further view will be taken at an appropriate time,” the Indian Oil said.

State-owned oil firms have now abandoned the practice of revising petrol prices on the 1st and 16th of every month. Price is now revised on a random date.

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