After a hike in CNG and LPG prices earlier this week, the oil marketing companies raised diesel and petrol prices on Friday.
Petrol price was hiked by 75 paise and diesel by 50 paise a litre respectively effective from Friday-Saturday midnight, excluding local taxes or VAT.
Petrol will now cost Rs 79.38 a litre in Bangalore as against the earlier Rs 78.38, a hike of rupee one, while diesel will cost Rs 59 a litre as against Rs 58.40, an increase of 61 paise.
The increase in auto fuel prices come in the wake of rising international oil prices and depreciation of the rupee against the dollar.
“Since the last price change, international prices of gasoline have increased from about $115 per barrel to about $116.6, and the rupee-US dollar exchange rate has depreciated from Rs 61.88 to a US dollar to Rs 62.00,” India’s largest fuel retailer Indian Oil Corporation (IOC) said in a statement.
With the latest increase, petrol will now cost Rs 72.43 a litre in Delhi from Rs 71.51 while in Kolkata, it will cost Rs 79.55, in Mumbai Rs 79.52 and in Chennai Rs 75.68.
Diesel will now cost Rs 54.34 in Delhi, Rs 58.76 in Kolkata, Rs 61.42 in Mumbai and Rs 57.93 in Chennai. Since January 2013, diesel rates have risen by a cumulative Rs 7.19.
The government had on January 17, 2013 authorised the oil marketing companies to increase the retail selling price in small doses every month till their losses were wiped out.
IOC, however, said that despite the increase every month, the under recovery or loss on diesel will stand at Rs 9.24 per litre.
“For the year 2013-14, IOC is expected to incur under-recovery of Rs 74,700 crore on sale of three sensitive products,” the IOC statement said, adding that the industry would end the year with a Rs 1,44,800-crore loss.