July 15, 2013: A fortnight after the last price hike, oil marketing companies (OMCs) have hiked petrol prices by Rs 1.55 per litre as the fast-sliding rupee has made dollar imports dearer. This is the fourth increase in petrol prices since June as a result of the sharply depreciating rupee versus the US dollar. The price of diesel, however, remains unchanged, although a price hike is expected to be announced at the end of the month.
While petrol prices in Mumbai stand increased to Rs 77.73 compared to Rs 75.79, the fuel will now cost Rs 70.44 in New Delhi, Rs 77.76 in Kolkata and Rs 73.60 in Chennai (see price increase chart below).
In a statement issued yesterday, IndianOil Corporation said: “Since the last price change, the downward spiral of rupee against the US dollar has continued to reach a low of Rs 60.03/US$ as against Rs 58.94/US$ during the previous fortnight. Further, international MS prices have also shown an uptrend and increased from $115.29 bbl (barrel) to $117.19/bbl. The combined impact of deteriorating exchange rate and increasing international oil prices has resulted in the need to increase petrol prices by Rs 1.55/litre (excluding VAT). “
One bbl or barrel is the unit of volume for crude oil and petroleum products and equals 42 US gallons or 35 UK (imperial) gallons, or approximately 159 litres.
OMCs had on June 1 raised petrol prices by 75 paise, then followed it with a Rs 2 per litre increase on June 16, and Rs 1.82 on June 29. With the latest increase of Rs 1.55 per litre, all of the gains made from four reductions in prices earlier this year have been neutralised. The rates cuts had brought down the price to Rs 63.09 at the beginning of May this year.