New Delhi, May 31: Petrol price was today hiked by 75 paisa per litre and diesel by 50 paisa a litre as rupee hit 11-month low making oil imports costlier.
The increase in rates, which are excluding local sales tax or VAT, will be effective from midnight tonight, Indian Oil Corp, the nation’s largest oil firm, said.
Petrol price in Delhi was hiked by 90 paisa to Rs 63.99 a litre from Rs 63.09 currently, while diesel will cost Rs 50.25 per litre from tomorrow as against Rs 49.69 currently.
Also, the oil companies cut price of cooking gas (LPG) that consumers have to buy beyond their quota of nine subsidised cylinders in a year, by Rs 45 per bottle.
Non-subsidised domestic LPG in Delhi will now cost Rs 802 per 14.2-kg cylinder as against Rs 847 currently.
The increase in petrol price is the first in three months, the last hike being on March 1. Since then, petrol prices had been cut four times on falling global oil prices.
For diesel, this is the fifth increase in rates this year.
State-owned oil firms had been in January authorised to raise diesel prices by up to 50 paisa per litre every month till entire losses on the fuel are wiped out. Diesel price was last hiked by 90 paisa a litre on May 11 after the companies skipped raising rates in April to avoid troubles for the government during the Budget session of Parliament.
Petrol in Mumbai will cost Rs 70.68 a litre from tomorrow as against Rs 69.73 currently, while diesel prices was raised by 62 paisa to Rs 56.66.
“Prices of petrol were last revised downwards on May 1 by Rs 2.50 per litre (excluding state levies). The current increase is required mainly due to depreciation of rupee from Rs 54.26 to a US dollar to Rs 55.32 per USD,” IOC said.
Despite the fifth increase in diesel rates, oil firms are losing Rs 4.87 per litre on the nation’s most consumed fuel.
“In addition to diesel, oil marketing companies continue to suffer under-recovery (loss) on sale of kerosene of Rs 27.75 per litre and LPG of Rs 334.50 per cylinder,” IOC said.
The price of non-subsidised cooking gas, which was cut by Rs 54 per cylinder from May 11, has further been reduced by Rs 45 per 14.2-kg bottle. The price of a 14.2-kg LPG cylinder that consumers buy beyond their quota of 9 subsidised cylinders has been reduced to Rs 802 from Rs 847.
Rates will vary in different cities, depending upon local sales tax or VAT.
This is the third time that the price of non-subsidised LPG cylinder have been slashed since April. Price was last cut by Rs 54 to Rs 901 on May 1 and by Rs 3 on April 1.
After accounting for local VAT, petrol prices was cut by Rs 3 per litre on May 1, Rs 1.20 on April 16, Re 1 on April 1 and Rs 2.40 on March 16.
The government had in January allowed oil firms to raise diesel prices in small dozes of 40-50 paisa per litre every month till such time that losses on fuel sales are wiped out.
Prior to today’s increase, diesel price had been hiked four times, the last being on May 11 when it was raised by Rs 1.02 a litre.
Before that diesel prices were hiked on March 23 by 45 paisa, excluding VAT. Similar hikes had taken place in January and February, but prices were not changed in April when Parliament’s Budget session was on. So from May 11, oil firms effected hike for two months – April and May, totalling about a rupee.
“Further, in pursuant to Government of India order dated January 17, oil marketing companies have been authorised 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,” IOC said.