New Delhi: Petrol and diesel are to cost Rs2.35 and Rs0.50 more per litre, excluding state taxes, from midnight yesterday, state-run Indian Oil Corporation (IOC) announced.
The IOC said that it had to hike prices due to sharp depreciation of the rupee and hardening of crude prices in the international market due to the volatile situation in Syria.
The Indian rupee has lost more than 25 percent against the dollar since the beginning of the financial year. On August 28, 2013, the partially-convertible rupee touched a new record low of 68.80 against the dollar.
Concerns have been raised about escalation in tensions in Syria over possible US intervention and the likely fallout on oil prices. India imports almost 79 percent of its total crude oil requirements.
“Currently, the rupee-dollar exchange rate continues to be extremely volatile. Also, the geopolitical situation in the Middle-East is leading to pressure on international oil prices as well,” the IOC said in a statement.
“In view of these conditions, movement of prices in international oil markets and rupee-dollar exchange rate is being closely monitored and subsequent price changes will reflect developing trends of the market.”
The three state-owned oil marketing companies (OMCs) had last raised prices of petrol and diesel by Rs0.70 and Rs0.50 more per litre, respectively, on August 1, 2013.
In Delhi, the price of petrol would increase to Rs74.10 per litre while diesel would increase to Rs51.97 per litre.
Similarly, in Mumbai, Chennai and Kolkata, petrol would now be priced at Rs81.57, Rs77.48 and Rs81.57 per litre, respectively. For diesel, the upward revision would result in prices of Rs58.86, Rs55.37 and Rs56.33 per litre in the three cities, respectively.
Even after the current increase, under-recovery on retail diesel would be Rs12.12 per litre, IOC said. The OMCs have been authorised by the government to increase the sale price of diesel within a small range every month.
Currently, the government subsidies the retail sale prices of diesel, kerosene and cooking gas to insulate domestic users from the impact of any rise in international oil prices and to contain domestic inflationary conditions.
Under-recovery for kerosene stands at Rs36.83 per litre and for liquefied petroleum gas at Rs470 per cylinder.
According to current estimates for 2013-14, the three OMCs are slated to incur under-recovery of Rs1.44tn on sale of three sensitive products.
IANS
