Be prepared for yet another round of diesel and petrol price hike soon. Hardening of international crude prices and the recently approved policy decision to pass on higher diesel prices in a staggered manner have prompted state-owned oil companies — Indian Oil, HPCL and BPCL to pass on an increase of anywhere between 50 paise and Rs. 1 per litre each for petrol and diesel respectively.
A top oil company official, who did not wish to be identified, said the hike would be announced soon.
Following a spurt in global oil prices, oil companies are losing close to Rs. 1 per litre on petrol, Rs. 11 on every litre of diesel and around Rs. 500 on every LPG cylinder.
The government has already announced plans to eliminate diesel subsidies by 2014-15. Higher diesel prices are likely to raise food prices and fuel inflation.