Oil-marketing companies have raised the prices of petrol by 60 paise/litre and diesel by 50 paise/litre, both excluding the State levies, effective midnight. The increase in international prices has prompted the hike in the domestic market. Petrol price was last revised on January 4.
According to Indian Oil Corporation, “There is continued volatility in the international oil prices because of geopolitical and economic developments around the globe.”
For diesel, post the hike, the companies would incur a loss of ₹8.37/litre for selling it below market price (commonly known as under-recovery)
On January 17, 2013, the Government allowed oil marketing companies to increase diesel price in small doses.