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Posted on Feb 15, 10:17PM | IBNS
New Delhi, Feb 15 : Adding burden to consumers, petrol and diesel prices were hiked on Friday and will come to effect from midnight.
Petrol price has been hiked by Rs 1.50 per litre while diesel price was increased by Re. 0.45 per litre.
Announcing the hike, state-run Indian Oil Corporation Ltd. (IOC) said: "Selling price of HSD (diesel) to be revised upward by Rs 0.45/litre (excluding VAT)."
On petrol price, IOC said: "Selling price of MS to be revised upward by Rs 1.50/litre (excluding VAT)."
"MS prices were last revised downward by Rs. 0.25/litre/litre (excl VAT) on 18th January'13. Since last price change the international oil prices have constantly shown an uptrend. Crude oil price has increased from $109.08/bbl to $ 113.24/bbl, while International MS prices have increased from $119.59/bbl to $128.57/bbl," IOC said.
"The INR-USD exchange rate has however improved from Rs.54.78 to Rs.53.43 per USD during the period. The Corporation has been compelled to pass on the increase in MS prices to consumers as the Corporation has already suffered losses on sale of MS so far and trends in international oil market as well as INR-USD exchange rate indicate continued strength. In fact, currently MS prices are hovering around $132.80/bbl," it said.
On diesel price, IOC said: "HSD prices were last revised upward by Rs.0.45/litre (excl VAT) on 18th Jan'13. As a result, the under-recovery on HSD had correspondingly reduced to Rs.9.15/litre. However, since the last price revision, international HSD prices have also shown continued uptrend. As a result, under-recovery has gone up to Rs.10.72/litre which now, with current upward revision of HSD prices by Rs. 0.45/litre, shall stand reduced to Rs. 10.27/litre."
Pertinently, Petroleum and Natural Gas Minister M Veerappa Moily earlier this month said the oil marketing companies could hike diesel prices by 40-50 paise per litre every month.
"Until further orders, oil marketing companies can increase it ( price of diesel) by 40-50 paise (per litre) every month," Moily told media on Friday.
The government, which otherwise controls the subsidized retail price of diesel, on Jan 17 allowed the retailers to raise the price in small amount every month or time to time, thereby deregulating the prices partially.