IOC hikes petrol price by 72 paise a litre

Indian Oil Corporation, the nation's largest fuel retailer, today hiked petrol prices by 72 paise a litre effective midnight. While Bharat Petroleum Corporation Ltd announced a 70 paise per litre increase in petrol prices yesterday, Hindustan Petroleum Corporation is expected to follow suit in a day or two.

Indian Oil Corporation, the nation's largest fuel retailer, on Saturday hiked petrol prices by 72 paise a litre effective midnight.

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IOC sources said after the hike, petrol in Delhi will cost Rs 52.55 a litre and the rate in other cities will vary depending on local taxes and levies.

While Bharat Petroleum Corporation Ltd had on Friday announced a 70 paise per litre increase in petrol prices, Hindustan Petroleum Corporation is expected to follow suit in a day or two.

The three oil companies no longer revise petrol prices in tandem to avoid being accused of acting as a cartel. The three companies also do not have a uniform price for petrol with IOC selling the fuel three paise cheaper than BPCL. Petrol at HPCL is 1 paise cheaper than BPCL.

Sources said the three companies are losing about Rs 1 per litre on petrol after international oil prices rose to over $80 per barrel this month.

The government had in June freed petrol pricing from its administrative control, allowing the state companies to fix rates in line with the cost of production.

This is the second increase in petrol prices since June this year.