Indian Oil Corporation, the country’s largest oil marketing company announced a hike of ₹1.69 per litre in the retail price for petrol and ₹0.50 per litre for diesel, with effect from midnight of June 30. The prices are exclusive of State levies.
“Due to the geopolitical unrest in the Middle East, there has been significant increase in international oil prices during the past two weeks,” IOC said in a statement.
“The international prices of MS have increased by more than $4 per barrel and the rupee-dollar exchange rate has also deteriorated. The combined impact of both these factors warranted an increase in petrol prices,” the statement added.
Retail prices of diesel are being increased every month by ₹0.50 per litre every month since January 2013. IOC said even after the latest increase, the under-recovery on retail diesel stands at ₹3.40 a litre.
Prices of public distribution system (PDS) kerosene and domestic LPG remained unchanged. IOC said it suffers under-recoveries of ₹33.07 per litre on PDS kerosene and ₹449/cylinder on LPG.
“For the year 2014-15, the company is expected to incur under-recovery of around ₹56,550 crore on the sale of three sensitive products,” the company said in its statement.