The public sector oil-marketing companies have raised petrol price by 75 paise/litre and diesel by 50 paise/litre (excluding local taxes) effective midnight of Friday. This is the first fuel price increase of this calendar year.

The price of both fuels were last revised on December 20, after dealers’ commission were hiked. In a statement issued here, Indian Oil Corporation (IOC) said the increase in international prices of crude oil and petroleum products has resulted in increase of prices in the domestic market.

According to IOC, international prices of petrol have increased from about $115/barrel to about $116.6/barrel. At the same time, the rupee has also depreciated from Rs 61.88 to Rs 62.00 against the dollar.

“There is continued volatility in the international oil prices because of geopolitical and economic developments around the globe,” the public sector company said.

For diesel, post the hike, the companies would incur a loss of Rs 9.24/litre for selling it below market price (commonly known as under-recovery).

(This article was published on January 3, 2014)
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