Petrol price hiked by 75 p, diesel 50 p
Adding pressure on consumers, petrol price has been hiked by 75 paise per litre while diesel price was increased by 50 paise per litre, both without taxes, on Friday and the new prices will come to effect from midnight. Announcing the price changes, state-run Indian Oil Corporation Ltd. (IOC) said in a statement
"Since the last price change, international prices of MS have increased from about USD 115/bbl to about USD 116.6/bbl, and the INR-USD exchange rate has depreciated from Rs. 61.88/$ to Rs. 62.00/$. There is a continued volatility in the international oil prices because of geopolitical and economic developments around the globe. In addition to above, in pursuant to GOI order dated 17th Jan'13, OMCs have been authorized to increase the retail selling price of Diesel within a small range every month until further orders. Accordingly, since then, Retail Diesel prices are being revised every month. In continuation of above, Indian Oil Corporation Ltd. has decided to effect the aforesaid increase in Retail Diesel prices. Even after the current increase, under recovery on Retail Diesel shall stand at Rs. 9.24/litre," it said.
"The Corporation is also suffering under-recoveries on sale of SKO (PDS) of Rs.37.33/litre & LPG (Dom) of Rs. 762.50/cyl. For the year 2013-14, the Corporation is expected to incur under-recovery of Rs 74,700 crore on sale of three sensitive products (Industry: Rs 1,44,800 crore)," IOC said.
(Posted on 03-01-2014)