Petrol Prices Hiked 7th Time Since June

Petrol prices have been increased again by Rs. 1.63 per litre, and this is the seventh hike since June. The hike mentioned is excluding all the local taxes and VAT, and if these are added, petrol price in Delhi will go up by Rs 1.96 to Rs 76.06 per litre, while it will cost Rs. 83.63 per litre in Mumbai with a hike of Rs. 2.06 per litre. And these revised prices will be effective from Saturday midnight. Indian Oil Corporation had last revised Petrol price on 1st September'13, based on the prices prevailing in the second fortnight of August'13.

During first fortnight of September'13, average International prices of Petrol have gone up from $ 114.44/ bbl to $ 117.40/bbl. The average INR USD Exchange rate has also deteriorated further from Rs. 63.88/$ to Rs. 66.02/$. To give effect to these twin reasons, the Corporation is required to increase Petrol prices by Rs. 1.63 (excluding VAT) w.e.f. Midnight of 13th-14th September 2013.

Should the recent trend of stabilization and appreciation of INR-USD exchange rate continue and international Petrol prices also not move adversely, the beneficial effect of the same will be passed on to the consumers in the next fortnight.

As regards regulated product prices, at current level, IOC is suffering under-recovery on sale of HSD (Retail) of Rs. 14.50/litre, SKO (PDS) of Rs.36.83/litre & LPG (Dom) of Rs. 470.50/cyl. For the year 2013-14, the Corporation is expected to incur under-recovery of Rs 82,000 crore on sale of three sensitive products (Industry: Rs 1,56,000 crore).

The movement of prices in the international oil market & INR-USD exchange rate are continuously under watch and developing trends reflected in future price changes.