Petrol prices could be hiked by close to Rs 1 a litre by the end of this week as the uptrend in global oil prices continues despite hopes of crude oil prices stabilising in the aftermath of the landmark deal between the West and Iran over the latter's nuclear programme.
Global crude oil prices that stood at $108.5 a barrel are currently hovering close to $110 a barrel.
"Global crude oil prices have gone up and the trend warrants an increase in domestic price of petrol...but if the rupee stabilises further in the coming week, the impact of price hike may get reduced," said a senior oil company official, adding that the quantum of hike could be around Rs one a litre including taxes.
The hike in petrol price would come along with the monthly hike in diesel prices by 50 paise a litre.
State-owned oil firms—Indian Oil, Hindustan Petroleum and Bharat Petroleum-- revise petrol prices on the 1st and 16th of every month based on trends in oil prices and currency exchange rate in the preceding fortnight, had left the rates unchanged even on November 16.
However, with assembly elections in four states, there was no change in petrol prices on November 16 and December 1 and oil companies decided not to pass on the 25-30 paise increase that was necessitated by depreciation of the rupee against the dollar.