Once again the price of Petrol has been raised by Rs. 1.82 per liter (excluding taxes) as well there is price hike of Rs. 0.50 per liter in diesel also. Oil companies have cited reason being loss in value of rupee against US dollar.
Petrol – Diesel price Hike India
As a result of continuous falling value of Rupee in last month, in June we saw total 3 time price hikes in petrol. The price of petrol was increased by Rs. 0.75 per litre on June 1 2013 and then by Rs. 2 per litre on 15th June 2013 and now we have this another price hike. According to the Indian Oil Corporation, the fall in the value of rupee combined with the hardening of crude rates in the international market has lead to this price hike.
Now including local taxes, a litre of petrol costs Rs. 68.58 in Delhi per liter, Rs. 76.10, Rs per littler in Kolkata , Rs. 76.90 per liter in Mumbai and Rs. 71.71 per litre in Chennai.
Also, the government, for the first time in three years, has approved the proposal to increase the prices of gas, as well. According to Finance Minister P. Chidambaram, the decline in domestic output has resulted in the rise in the LNG import. He said that this is a tough macroeconomic situation, which has forced the government to double the prices of gas, owing to low domestic output.
Since there is hike in diesel price also, after the revision, diesel prices in the four major cities stand as follows: Delhi- Rs. 50.84 a litre; Kolkata- Rs. 55.16; Mumbai- Rs. 57.61; Chennai- Rs. 54.15. Infact this is the sixth hike in diesel prices since January when the government permitted state-run oil companies to hike the price of the fuel by 45-50 paise per litre per month till the losses incurred on the sale of the fuel below market rates are wiped out.
Oil firms are currently losing around Rs. 8.10 on the sale of every litre of diesel. And losses have increased because of depreciation of value of Rupee even further and as per Govt. it was necessary to transfer these losses by increasing prices. Still the losses will be there however, they said this slight increase will mitigate to certain level.
