August 1, 2013
NEW DELHI: State-run fuel retailers on Wednesday announced they would raise the price of petrol by 70 paise and diesel by 50 paise a litre, both excluding local taxes.
The revised prices will come into effect from Wednesday midnight. The actual increase at petrol pumps will be a tad higher due to the incremental increase in state levies.
August 1, 2013
NEW DELHI: State-run fuel retailers on Wednesday announced they would raise the price of petrol by 70 paise and diesel by 50 paise a litre, both excluding local taxes.
The revised prices will come into effect from Wednesday midnight. The actual increase at petrol pumps will be a tad higher due to the incremental increase in state levies.
This is the fifth increase in petrol price since June and rates have gone up by Rs 6.82 per litre. The retailers had on June 1 raised price by 75 paise, excluding VAT, and followed it with a Rs 2 per litre increase on June 16, a Rs 1.82 increase on June 29 and Rs 1.55 hike on July 15.
The increase in diesel price is in line with the government's January decision allowing state retailers freedom to raise prices in "small doses" every month till the gap between pump prices and the fuel's market rates are wiped out.
This is the seventh increase in diesel price since the January decision. But the fall in rupee — 12% since April — has worsened the situation and retailers will continue to lose Rs 9.29 per litre even after the latest increase. Altogether, diesel price has gone up by Rs 3.75 since January.
In addition, the retailers will continue to suffer under-recovery on sale of kerosene of Rs 33.54 per litre and Rs 412 on each cylinder of cooking gas. For the year 2013-14, IndianOil is expected to incur under-recovery of Rs 68,000 crore on sale of diesel, kerosene and cooking gas. The figure stands at Rs 128,500 crore if the under-recoveries of all three state retailers are considered.
Courtesy: PTI
