Petrol price hike is back: INR 1.7 more per ltr from midnight 1st March 2013

This is the second hike implemented in fuel prices in the last 15 days. The previous price hike resulted in petrol becoming dearer by INR 1.5 and diesel getting dearer by INR 0.45 per liter. The new price hike has spared diesel prices, but petrol is set to be dearer by INR 1.40 from midnight, thats about 5.5 hours from the time this article was published. This hike does not include local sales tax or Value Added Tax – VAT. Once they are added, the hike will will be even more.

As you can see in the image here, once these taxes are added, the new petrol price in Mumbai will be INR 77.66 (up by INR 1.77), Chennai will be INR 73.95 (up by INR 1.78), Delhi will be INR 70.74 (up by INR 1.68), and Kolkata will be INR 78.34 (up by INR 1.75). All prices here are per liter prices.

The reason behind the increase in price of petrol, is due to the increase of prices internationally, and also due to the fluctuating rupee value against dollar. Indian Oil, the largest state owned oil company in the country, stated, “International prices have increased from $128.57/bbl to $131.00/bbl since the last revision, and the rupee has depreciated from Rs.53.43 to Rs.54.15 per US Dollar during the period.”

Petrol prices in India were decontrolled in June 2010. Under deregulation, the oil companies are free to implement as many number of price hikes as there need be. Ever since deregulation, there have been 29 revisions made to fuel prices, of which only 8 times they have been decreased.