Fifteen days after a 75 paise per litre increase in petrol prices was effected, oil marketing companies (OMCs) on Saturday hiked the price by a steep Rs 2 a litre, owing to the recent weak rally of the rupee against the dollar.
The hike, which is effective from Saturday night, is excluding local sales tax or VAT and actual increase for consumers will be higher. Petrol price in Delhi will now stand at Rs 66.39 from the earlier Rs 63.99 a litre. However, unlike last time, there will be no change in price of diesel, a statement by Indian Oil Corporation (IOC) said.
“Since last price change, the slide in rupee (against the dollar) has continued and the dollar-rupee exchange rates have deteriorated from Rs 55.32 to Rs 57.08 per dollar,” said IOC.
It added that international petrol prices have also hardened during this period. “The combined impact of both these factors, mainly depreciation of the rupee, has warranted the increase in petrol prices by Rs 2 per litre (excluding VAT),” the statement added.
The June 1 increase in petrol price was the first in three months. The previous hike was on March 1, which was followed by rates being cut four times on falling global oil prices.
Diesel prices has been hiked on five occasions since January when the Government authorised State-owned oil firms to increase prices by up to 50 paisa per litre every month till entire losses on the fuel are wiped out.