The new prices will be effective from midnight Monday.
"Decrease in retail selling price of Petrol by Rs. 3.05/litre (excluding state levies). Increase in retail selling price of Diesel (Retail) by Rs.0.50/litre (excluding state levies)," state-run Indian Oil Corporation Ltd. (IOC) said in a statement.
"Prices of Petrol were last revised upwards on 14th Sep'13. The decrease in petrol prices has now become feasible as above because of reduction of MS prices from about USD 117/ bbl to about USD 113/ bbl and appreciation of Rupee against Dollar from about Rs 66/USD to about Rs 63/USD . Both these factors have resulted in the reduction of MS prices which is being passed on to the consumer," it said.
"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. 10.52/litre," IOC said.
"In addition to under-recoveries on Retail Diesel, the Corporation is also suffering under-recoveries on sale of SKO (PDS) of Rs.38.32/litre and LPG (Dom) of Rs. 532.50/cyl. For the year 2013-14, the Corporation is expected to incur under-recovery of Rs 73,500 crore on sale of these three sensitive products (Industry: Rs 1,39,600 crore)," it said.
The IOC said the movement of prices in international oil market and INR-USD exchange rate is being closely monitored and developing trends of the market will be reflected in future price changes.
--IBNS (Posted on 01-10-2013)