Petroshock! Pay Rs 8.24 more
Highest single hike ever; diesel, LPG untouched
In the steepest-ever increase, petrol price went up by Rs 8.24 per litre from Wednesday-Thursday midnight in the City . The revised retail price is Rs 81.75 a litre.
The price of the transport fuel will be even higher in different states with the addition of sales tax or VAT, which vary from state to state.
In Delhi, the revised price of petrol will be Rs 73.18 a litre, in Chennai Rs 77.53 a litre, in Mumbai Rs 78.57 and in Kolkata Rs 77.88.
The hike effected by oil marketing companies came a day after the UPA II government at the Centre completed three years in office. The Budget session of Parliament also concluded on Tuesday.
However, diesel price has been left untouched though the oil marketing companies have been demanding sharp increase in the price. The government also left PDS kerosene and LPG prices untouched.
A statement by India’s largest oil marketing company, the Indian Oil Corporation, said the hike before tax will be Rs 6.28 per litre. The other two OMCs, Bharat Petroleum Corporation and Hindustan Petroleum Corporation also followed the move.
The revision in petrol prices is the first in the current year. The last revision was in December 2011, when it was cut by 78 paise a litre.
Although officially, petrol is a deregulated commodity, retailers do not change the fuel’s pump prices without the oil ministry’s informal approval. The ministry had prevented them from raising prices due to Assembly elections earlier this year, fearing public anger.
High global crude prices and India’s rising import bill due to depreciation in rupee appear to have prompted oil companies to go in for the steep rate revision.
The latest rate for Indian basket of crude is nearly $107 a barrel, while the rupee has slumped below 56 against the dollar. Though the rise in petrol prices came as a rude shock to consumers, oil companies said they still need a rise of Rs 1.50 to fully compensate their losses at current prices of fuel.
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