The constantly dipping rupee left its impact on the petrol prices, as they were hiked by a significant Rs1.82 a litre effective from midnight tonight. This is the third time within the last 30 days that the prices have been increased.
Resultantly, petrol price in Delhi was hiked by Rs2.19 per litre to Rs68.58 from the present slab of Rs66.39 a litre.
The falling rupee made imports costlier, Indian Oil Corporation (IOC) said in a statement.
An increase in diesel rates is expected early next week. The hike effected by oil companies however excludes local sales tax or VAT. The actual increase will be higher and will vary from city to city depending on local taxes.
Earlier oil firms had on June 1 raised prices by 75 paisa, excluding VAT, and followed it with a Rs2 per litre hike on June 16.
The revision in prices as per the practice of changing rates in line with cost every fortnight, was due on Sunday June 30 but were raised on Friday.
Diesel price too is likely to be raised by 40-50 paisa per litre early next week in accordance with the Government mandate for small doses of increases every month.
This week’s increases have almost negated the four reductions this year that had brought down the rates to Rs 63.01 at the beginning of May.
“Since last price change, the downwards slide of rupee has continued and dollar-rupee exchange rate has deteriorated from Rs57.08 to a dollar to Rs58.94 during the fortnight,” IOC said.