Oil marketing companies on Friday hiked petrol prices by 60 paise a litre, the second increase this year, and diesel by 50 paise per litre, the 14th hike since January 2013.
Announcing the price hike, Indian Oil Corporation (IOC), the nation's largest fuel retailer, said that petrol price has been hiked as international oil rates have risen and rupee depreciated against US dollar, thus making imports costlier. The hikes, effective from midnight tonight, are excluding local sales tax or VAT and actual increase will be higher and will vary from city to city.
Subsequently the petrol price, which was last hiked by 91 paise on January 4, 2014, will cost Rs 73.16 a litre in Delhi from midnight tonight, up 73 paise from Rs 72.43 at present. The price of diesel in Delhi will be hiked by 57 paise, including tax, to Rs 55.48 per litre. The diesel price increase is in line with the January 2013 decision of the Government to raise rates by up to 50 paise per month till such time that the entire losses on the fuel are wiped out, and prices made market determined.
IOC said even after the 14th price hike since January 2013, the oil companies are incurring Rs 8.37 per litre loss on sale of the fuel. Since January 2013, diesel rates have risen by a cumulative Rs 8.33. Besides diesel, oil firms are losing Rs 36.34 a litre on sale of kerosene through public distribution system (PDS) and Rs 605.50 on every 14.2-kg domestic cooking gas (lPG).
"Since the last price change, international prices of gasoline (petrol) have increased from $116.04 per barrel to $118.10, and the rupee has also depreciated from Rs 62.02 to a US dollar to Rs 62.12," the IOC statement said. The combined impact of both these factors, has warranted the increase in petrol prices by Rs 0.60 per litre, excluding state levies, it added.