Petrol prices have been hiked by Rs. 3.14 a litre, which will be effective from midnight today
"This after state-owned oil firms met the Petroleum Secretary in Mumbai today to make a case for a hike, after the rupee touched a two-year low against the US dollar," NDTV reports.
Indian Oil Corp (IOC), Bharat Petroleum Corp (BPCL) and Hindsutan Petroleum Corp (HPCL) now lose Rs 2.61 per litre due to high international crude oil prices and with rupee touching two-year low against the US dollar, the losses have increased the cost of importing crude oil.
Petrol price was last hiked by Rs 5 per litre on May 15. It costs Rs 63.70 per litre in Delhi.
Petrol price was freed from the government control in June last year, but the retail rates have not moved in line with cost as high inflation rate forced the oil companies to seek 'advice' from parent oil ministry before revising rates.
IOC, BPCL and HPCL have reportedly lost Rs 2,450 crore this fiscal on selling petrol below the cost.
Besides petrol, the three firms are losing Rs 263 crore per day on selling diesel, domestic LPG and kerosene below cost. Diesel is being sold at a subsidy of Rs 6.05 a litre, kerosene at Rs 23.25 per litre while domestic LPG rates are under-priced by Rs 267 per 14.2-kg cylinder.
A fall in the value of rupee increases the cost of importing crude oil. The rupee fell to 48 per dollar on Wednesday for the first time since September 2009. (ANI)
