Significant increase in international crude prices owing to the ongoing geopolitical unrest in the Middle East as well as the deterioration in the rupee-dollar exchange rate has forced oil marketing companies (OMCs) to effect a hike of Rs 1.69 per litre in petrol prices which will be effective from midnight tonight.
Continuing with the trend of gradually increasing diesel prices, a 50 paise per litre hike has also been announced, which will also be effective from midnight. The hike though excludes various State levies and, therefore, the prices of petrol and diesel will vary from city to city. Petrol in Delhi will cost Rs 73.58 per litre, up Rs 2.02 from Rs 71.56 at present. Diesel rates will go up by 56 paise to Rs 57.84 per litre.
"Due to geo-political unrest in the Middle East, there has been significant increase in international oil prices during the past two weeks. The international prices of gasoline (petrol) have increased by more than $4 per barrel, and the rupee-dollar exchange rate has also deteriorated. The combined impact of both these factors has warranted an increase in petrol prices by Rs 1.69 per litre, excluding state levies," Indian Oil Corp (IOC), the nation's largest oil firm, said in a statement.
On diesel price hike, the statement added that despite the 17 hikes since January 2013 (when the decision was taken to partially deregulate the 'aam admi' fuel's prices to rein in subsidy burden), oil firms are losing Rs 3.40 a litre on diesel. losses have increased from Rs 2.80 a litre earlier this month due to firming up of international oil rates and the rupee depreciating against the US dollar.
Besides diesel, the state oil firms lose Rs 33.07 a litre on kerosene sold through the public distribution system (PDS) and Rs 449 per 14.2-kg domestic subsidised lPG (cooking gas) cylinder. IOC said that at current rate the industry (IOC plus Bharat Petroleum and Hindustan Petroleum) are projected to end the fiscal with Rs 1,07,850 crore of revenue losses.