Announcing the price changes, state-run Indian Oil Corporation Ltd. (IOC) said in a statement: "Decrease in retail selling price of Petrol by Rs. 1.15/litre (excluding state levies).
"Increase in retail selling price of Diesel (Retail) by Rs.0.50/litre (excluding state levies)."
"Prices of Petrol were last revised downwards on 1st Oct'13 by Rs. 3.05/ litre (excluding state taxes) on account of softening of prices in international markets as well as strengthening of the Rupee. Since last price change, international prices of MS have declined marginally from about USD 113/bbl to about USD 112/bbl. The INR USD exchange rate has appreciated from around Rs. 63/USD to around Rs. 62/USD . Both these factors have resulted into a reduction in prices of Petrol, the benefit of which is being passed on to the consumer," the company 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. 9.58/litre," it said.
"The Corporation is also suffering under-recoveries on sale of SKO (PDS) of Rs.35.77/litre and LPG (Dom) of Rs. 482.50/cyl. For the year 2013-14, the Corporation is expected to incur under-recovery of Rs 71,200 crore on sale of three sensitive products (Industry: Rs 1,35,900 crore)," the company said.
--IBNS (Posted on 31-10-2013)