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Petrol prices likely to be hiked today

A hike of about Rs 2.10-2.13 per litre in petrol price is likely as oil companies will meet today to revise rates in the wake of weakening rupee. But any hike will need nod from the government.

business Updated: Jan 02, 2012 10:15 IST

A hike of about Rs 2.10-2.13 per litre in petrol price is likely as oil companies will meet on Monday to revise rates of petrol in wake of weakening rupee. But any hike will need nod from the government given that assembly elections in five states are around the corner.

Last week CNG prices were hiked in New Delhi and NCR by Rs 1.75 in the prices of CNG per kilogram. CNG now costs Rs 33.75 per kg in Delhi. In Noida, Greater Noida and Ghaziabad, the prices have been increased by Rs 2.

"While international price of gasoline (against which domestic petrol prices are benchmarked) are more or less at the same level (as at the time of last revision), the rupee has depreciated to about Rs 53 to a US dollar," an official said.

This warrants an increase of Rs 1.78 per litre and after adding local sales tax or VAT, the desired hike in petrol price in Delhi is Rs 2.10-2.13 a litre.

Petrol at Indian Oil Corp and Bharat Petroleum Corp petrol pumps in Delhi is now priced at Rs 65.64 per litre and at Rs 65.65 a litre on retail outlets of Hindustan Petroleum Corp.

Oil firms had, at the last review on December 15/16, decided not to burden the consumers with about Re 1 per litre hike in petrol price needed at that time, as they felt Reserve Bank's intervention may help arrest fall in rupee's value.

State-owned oil companies, revise rates of petrol on 1st and 16th of every month based on the average imported price and exchange rate during the fortnight.

The oil firms, in November cut petrol prices twice on drop in international oil rates. The companies reduced petrol prices by Rs 2.22 per litre, or 3.2%, from November 16, followed by a Rs 0.78 per litre cut from December 1.

Petrol price was freed from government control in June last year but public sector companies continue to informally consult their parent oil ministry before taking a decision.

(With inputs from PTI)