Petrol prices may go up in next revision by OMCs

Petrol prices may go up in next revision by OMCs

Petrol prices may go up further when oil marketing companies are due to revise fuel prices on June 15. This will happen because of a sharp depreciation in rupee against dollar even as crude prices have softened in international market.

Even if the price of crude oil in the international market remains stable, analysts expect the rupee value to slide further in coming months. This may prompt Indian oil companies to raise petrol and diesel prices in the domestic market.

Though the price of crude went down to $101.14 per barrel on Thursday, a bit lower than $101.42 a day before, the rupee has behaved quite opposite. It slid to its lowest this year and hit 57.06 to a dollar on Friday.

"There is a case for increasing the petrol price because the rupee-dollar exchange rate has changed. Rupee has depreciated significantly, it has breached the psychological mark of 57 now," industry sources said.

The continuously falling rupee has negated the marginal fall in crude prices for India. India is the net importer of crude oil and imports close of 80 per cent of its domestic needs.

Every one dollar rise in crude oil imports leads to a rise in domestic under recoveries by Rs 8,000 crore.

Petrol price was hiked by 75 paise per litre and diesel by 50 paise a litre on May 31 as rupee hit an 11-month low making oil imports costlier. The hike came for the first time in the past three months. Before, the May 31 hike, petrol prices were increased on March 1.

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