Sunday, September 1, 2013

Petrol dearer by Rs.2.35, diesel by 50 paise; bigger hikes soon

1sep,2013(7star news):-New Delhi: Petrol price was hiked by a steep Rs.2.35 per litre on Saturday and diesel by 50 paise ahead of a bigger increase in rates planned for next month that may also include LPG as falling rupee has made imports costlier.

The increase in price of petrol, the sixth hike in three months, and diesel, eighth since January, are excluding local sales tax or VAT and are effective midnight Saturday, oil firms said.

After the monsoon session of Parliament ends on 6 September, diesel prices may see a one-time hike of Rs.3-5 per litre, kerosene of Rs.2 and LPG of Rs.50 per cylinder as oil minister M. Veerappa Moily urged Prime Minister Manmohan Singh to take steps to tackle a record Rs.180,000 crore of losses arising from dipping rupee and surging oil rates.

Following Saturday's hike, petrol price in Delhi will go up by Rs.2.83 to Rs.74.10 per litre while it will rise to Rs.81.57 per litre in Mumbai from Rs.78.61 currently.

In a parallel move, diesel price was hiked by 50 paise, excluding VAT, in line with the January decision of the government allowing oil companies freedom to raise prices in small doses every month to wipe out mounting losses. Diesel price in Delhi has been hiked by 57 paise to Rs.51.97 per litre while it will now cost Rs.58.86 in Mumbai, up from Rs.58.23 currently.

Announcing the price increase, Indian Oil Corp. Ltd (IOC) said deteriorating exchange rate has led to widening of losses on sale of diesel from Rs.10.22 per litre in the first fortnight of August to Rs.12.12 per litre. The falling rupee has also led to widening of under-recoveries on kerosene to Rs.36.83 per litre and on LPG to Rs.470 per cylinder.
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