(RTTNews) - Petrol prices in India are likely to be increased by Rs.1.82 per litre this fortnight as a fall in rupee has increased the cost of imports of the raw material - Crude Oil. This will be the second increase in petrol prices in as many months, reports said.
In June last year, the pricing of petrol was freed from the government controls. However, state-owned oil companies informally take direction from the oil ministry. It remains to be seen if the government will concede to the oil companies demand just before the winter session of Parliament.
State-owned oil companies Indian Oil Corporation Ltd., Hindustan Petroleum Corporation Ltd., and Bharat Petroleum Corporation Ltd. last hiked petrol prices by Rs.3.14 a litre on September 16 , when the rupee was ruling at around 48 to a US dollar. The local currency has depreciated further and is now trading at over 49 against US Dollar.
HPCL director (Finance) B. Mukherjee said, "From Wednesday there were some losses on petrol. To cover them, we may have to increase prices."
He said crude oil is hovering at around $108 per barrel in international markets. At current exchange rate, petrol price of Rs.66.84 per litre in Delhi corresponds to around $102 per barrel equivalent of crude oil price.
However, he did not say when the price increase will come into effect.
The loss on petrol at present is Rs.1.50 per litre and after including local levies, the desired increase in retail prices is Rs.1.82 per litre.
