JOIN USIn the steepest hike this year and the first since the BJP-led government assumed power, the petrol price was increased by Rs 1.69 per litre from Monday midnight while the diesel price saw a 50 paise rise.
After the hike, petrol will be dearer by Rs 2.25 in the Bangalore, and will cost Rs 80.68 per litre. As the hikes exclude taxes, the final prices will vary according to different state levies.
“Due to geopolitical unrest in West Asia, there has been significant increase in international oil prices during the past two weeks,” India’s largest oil retailer Indian Oil said in a release.
The geopolitical situation has pushed international prices of gasoline by over $4 per barrel, while the rupee-dollar exchange rate has also deteriorated, Indian Oil said. It added that the combined impact of both these factors warranted the increase.
The other two state-owned oil marketing companies — Bharat Petroleum Corp Ltd and Hindustan Petroleum Corp Ltd—usually increase the prices in tandem with Indian Oil.
Prior to this, petrol prices were increased by a steep Rs 2.35 per litre at the end of August last year.
After that, the prices were increased in small measures. In April this year, petrol rate was cut by 70 paise. Thereafter, there was no hike in May during the general election.
The oil companies also effected an increase of 50 paise on diesel.
While petrol price has been decontrolled, public sector fuel retailers have been allowed to raise prices of diesel by around 50 paise per litre each month till their losses on the largest consumed fuel in India are cut to zero.
The IOC, however, said that despite the hike, it was estimated to lose Rs 3.40 per litre on the sale of subsidised diesel.