Petrol price hiked by Rs 1.63 a litre; 7th increase since June

Petrol prices were on Friday hiked by Rs 1.63 per litre — the seventh increase since June — on the back of rising oil rates and the falling rupee.

The increase excludes local sales tax or VAT and will come into effect from midnight on Saturday, oil firms said. The petrol price in Delhi will go up by Rs 1.96 to Rs 76.06 per litre, while it will cost Rs. 83.63 per litre in Mumbai as against the current Rs. 81.57.

With this increase, petrol prices have gone up by a massive Rs. 10.80 per litre since June, excluding VAT. The price in Delhi has surged by Rs. 13.06 per litre, inclusive of State tax, since June 1.

Hike timing advanced

A cut in petrol prices had been expected on September 15/16, the scheduled date for fortnightly revisions, on the back of an appreciating rupee over the past few days.

However, the oil firms advanced the date and announced the increase after factoring in the rupee’s depreciation in the early part of the month.

Indian Oil Corporation, the nation’s largest oil firm, said average international prices of petrol had gone up to $117.40 a barrel from $114.44 a barrel, while the average exchange rate had deteriorated to Rs. 66.02 a dollar in September from Rs. 63.88 in the second half of August.

“To give effect to these twin reasons, the Corporation is required to increase petrol prices by Rs 1.63 (excluding VAT) with effect from midnight of September 13-14,” it said.

The appreciation in the rupee during the past one week “will be passed on to consumers in the next fortnight,” the IOC said.

Oil firms had raised petrol prices by 75 paise, excluding VAT, on June 1 and followed it up with increases of Rs.2 per litre on June 16, Rs.1.82 on June 29, Rs.1.55 on July 15, 70 paise on August 1 and Rs.2.35 on September 1.

Diesel hike too likely

Diesel prices may soon see a one-time hike of Rs.3-5 per litre, kerosene of Rs.2 a litre and LPG of Rs.50 per cylinder as the Oil Ministry looks at ways to tackle a record Rs.180,000 crore of losses from the dipping rupee and surging oil rates. (The Hindu)