New Delhi, January 3, 2014: Oil marketing companies (OMCs) have increased the price of petrol by a 75 paise a litre and diesel by 50 paise a litre as global crude prices went up and the rupee value fell.
This increase, effective from the midnight Friday, comes immediately after the Centre raised the price of an unsubsidised LPG cylinder by Rs.220.
“Indian Oil Corporation (IOC) has decided to effect an increase in the retail selling price of petrol by Rs.0.75 per litre excluding State levies [and] and increase in the retail selling price of diesel by Rs.0.50 per litre, excluding State levies…Since the last price change, the international prices of MS (motor spirit) have increased, and the rupee-dollar exchange rate has depreciated. There is a continued volatility in the international oil prices because of geopolitical and economic developments around the globe,” IOC, the country’s largest OMC, said in a statement.
This increase, clubbed with taxes applicable in various States, will take the price of petrol up by over 90 paise, while the increase in diesel price in various States will be between 55 and 65 paise. For instance, a litre of petrol in Delhi will now cost Rs.72.43, while in Chennai it will be Rs.75.68. Similarly, diesel will now cost Rs.61.42 a litre in Mumbai and Rs.57.93 in Chennai.
IOC officials said that even after the 12th price increase since last January, they incurred a loss of Rs. 9.24 a litre in the sale of diesel. Since January 2013, diesel rates have gone up by Rs.7.19 a litre. The increase in diesel price comes after the Centre’s decision of January 2013 to raise it rates by up to 50 paise a month till the entire losses or under-recoveries on the sale of the fuel were wiped out and prices become market-determined. Last time, the petrol price was increased by 41 paise (excluding taxes) and diesel price by 10 paise on December 21 after the OMCs decided to raise the commission of petrol pump dealers.