The steep fall in the rupee against the dollar will cost you dear and so be prepared to shell out anywhere between Rs. 1.50 to Rs. 2 a litre more for petrol.
The weakening rupee has also affected diesel prices and underrecoveries (losses) on sale of this fuel that were reducing over the months have once again risen to over Rs. 5 a litre, which means that you will now have to continue paying a higher diesel price every month for the rest of the year.
The steady increase in diesel prices by 50 to 65 paise a month that was otherwise expected to end by September or October, will now get stretched to March or April next year. This also means that the proposed deregulation of diesel will get delayed further.
“We are contemplating an increase of anywhere up to Rs. 2 a litre along with the 50 paise hike in diesel prices,” a senior oil company official said.
The hike in petrol prices is expected to be announced by Friday and the new prices will be effective from Saturday. Diesel price hike may be announced by the end of the month.