Petrol costlier by 60 paise, diesel by 50 paise

10:31 AM, Saturday, March 1st, 2014

PetrolNew Delhi: Oil marketing companies (OMCs) on Friday decided to increase the price of petrol by 60 paise and diesel by 50 paise per litre; this on a day when the Centre decided to let consumers buy more than one subsidised cylinder per month.

The hike, which will come into effect from Friday midnight, is exclusive of taxes, which means that increase in auto fuel prices will vary from city to city.

This is the second time in the current year that petrol prices have been increased and 14th since January 2013. In the last one year, diesel prices have risen by over Rs.8.

As for the Cabinet decision to let LPG consumers buy more than one subsidised cylinder in a month, comes on the heels of the government raising the annual cap on supply of subsidised cylinders from 9 to 12, or one cylinder per month, on January 30. But now the Cabinet has approved the Oil Ministry’s proposal to allow LPG consumers to book a refill after 21 days within the overall cap of 12 subsidised cylinders in a year.

On the fuel price hike, a statement from the Indian Oil Corporation said: “The price of petrol was last revised upwards by Rs.0.75 a litre (excluding State levies) with effect from January 4, 2014. Since the last price change, international prices of gasoline (petrol) have increased from $116.04 per barrel to $118.10, and the rupee has also depreciated from Rs.62.02 to a U.S. dollar to Rs.62.12. The combined impact of both these factors, has warranted the increase…”

Pursuant to the government order dated January17, 2013, OMCs have been authorised to increase the retail price of diesel within a small range every month.

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