Effecting a second hike in petrol prices within a fortnight, the oil marketing companies (OMCs) on Friday increased the price by 75 paise a litre owing to rise a rise in global oil rates and fall in rupee value which led to higher cost of production.
At the same time diesel prices were also hiked by 50 paise a litre by the companies. The hikes, effective midnight tonight, are excluding local sales tax or VAT and actual increase will be higher and vary from city to city.
Petrol price, which was last hiked by 41 paise excluding VAT on December 21, 2013 as the Government had raised the commission paid to petrol pump dealers, will now cost Rs72.43 a litre in Delhi from midnight tonight, up 91 paise from Rs71.52 currently.
The price of diesel in Delhi will be hiked by 56 paise, including tax, to Rs54.34 per litre.
Meanwhile the diesel price hike was 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.
Announcing the price hike, Indian Oil Corporation (IOC) said that even after the 12th price hike since last January the oil companies are incurring Rs9.24 per litre loss on sale of the fuel.
The diesel price was last hiked by 10 paise on December 21 when the commission paid to petrol pump dealers was increased by the Government.
Since last January, diesel rates have risen by a cumulative Rs7.19 this year.
“Since the last price change, international prices of gasoline (petrol) have increased from about $115 per barrel to about $116.6, and the rupee-US dollar exchange rate has depreciated from Rs61.88 to a US dollar to Rs62.00,” IOC said in a statement.