In a second hike within a fortnight, petrol prices on Friday were increased by Rs3.13 a litre and diesel prices by Rs2.71 per litre, owing to a steep spurt in international prices of both the commodities. The hike, which comes on the back of Rs3.96 per litre increase in petrol and Rs2.37 a litre raise in diesel from May 1, will be effective from midnight tonight.
Prices of petrol in Delhi will be Rs66.29 a litre from Friday as against the current Rs63.16, while diesel will cost Rs52.28 per litre as against Rs49.57, Indian Oil Corp (IOC) said in a statement. The two consecutive hikes have wiped away more than one-third of the gains that had accrued to consumers when global rates began to fall in August last year.
“Since last price change (effective May 1), there has been a steep increase in international prices of both petrol and diesel. Rupee-US dollar exchange rate has also depreciated quite significantly during this period. Combined impact of both these factors warrant an upward revision in prices, the impact of which is being passed on to consumers with this price increase,” IOC added. State-owned fuel retailers IOC, Bharat Petroleum Corp (BPCl) and Hindustan Petroleum Corp (HPCl) revise petrol and diesel prices on 1st and 16th of every month based on average imported cost and rupee-dollar exchange rate in the previous fortnight.
Petrol prices had been cumulatively cut by Rs17.11 a litre in 10 reductions between August and February and diesel by Rs12.96 a litre in six cuts between October and February. After two rates hikes (0.82 a litre in petrol and Rs0.61 per litre in diesel on February 16, and Rs3.18 per litre in petrol and Rs3.09 a litre in diesel on March 1) rates were again cut on April 2 (49 paisa a litre in petrol and Rs1.21 in diesel) and on April 16 (80 paise per litre on petrol and Rs1.30 a litre on diesel). “The movement of prices in international oil market and rupee-USD exchange rate shall continue to be closely monitored and developing trends of the market will be reflected in future price changes,” IOC said.