January 4, 2014: Even as the new year has just begun, motoring has got costlier. Oil marketing companies have hiked the price of petrol per litre by 75 paise and that of diesel by 50 paise, citing an increase in global oil rates and the fall in rupee value. The hikes, which came into effect on the midnight of January 3-4, exclude local sales tax or VAT and will vary across cities.
According to Indian Oil Corporation, since the last price change on December 21, when petrol prices were raised by 41 paise a litre and diesel by 10 paise a litre, international prices of crude have increased from about $115/bbl to about $116.6/bbl, and the rupee-dollar exchange rate depreciated from Rs 61.88 to Rs 62.00. The company says, even after the latest increase, under-recovery on retail diesel shall stand at Rs 9.24 a litre.
As a result of the hike, petrol will now cost Rs 81.31 a litre in Mumbai, Rs 72.43 in Delhi, Rs 75.68 in Chennai and Rs 80.20 in Kolkata. Meanwhile, diesel will cost Rs 62.60 in Mumbai, Rs 54.34 in Delhi, Rs 57.95 in Chennai and Rs 58.91 in Kolkata. Since January 1, 2013, while the price of petrol per litre in Mumbai has risen by 6.99 a litre, that of diesel has increased by Rs 9.46 a litre. The rising price of diesel has already seen an adverse impact on sales of diesel-engined cars, while sales of petrol cars are showing a marked rise.
On January 17, 2013, the government authorised oil marketing companies to increase the retail selling price of diesel within a small range (50 paise) every month.