Petrol price hiked by Rs1.40 per litre
New Delhi, Mar 1 : Adding burden to Indian consumers, petrol price was hiked by Rs 1.40 per litre on Friday and will come to effect from midnight.
Announcing the hike, state-run Indian Oil Corporation Ltd. (IOC) said it has 'decided to effect the changes in MS retail selling prices w.e.f midnight of 1st/2nd March'13 upwards by Rs.1.40 /litre (excluding VAT)'.
"MS prices were last revised upwards by Rs.1.50/litre (excl VAT) on 16th Feburary'13," the company said.
"The price increase has been necessitated by two factors-The international MS prices have increased from $128.57/bbl to $ 131.00/bbl since the last revision and the rupee has depreciated from Rs.53.43 to Rs.54.15 per US Dollar during the period," it said.
"The combined impact of these two factors has compelled the company to revise the prices. The Corporation does not have any other option but to pass on the increase in MS prices to consumers as the Corporation has already suffered losses on sale of MS during the year," the company said.
IOC said the trends of international oil prices and INR-USD exchange rate shall be closely monitored and the same shall be reflected in future price changes.
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.