This Article is From Dec 21, 2013

Petrol gets costlier by 41 paise a litre, diesel by 10 paise

Petrol gets costlier by 41 paise a litre, diesel by 10 paise
New Delhi:

Petrol price was on Friday hiked by 41 paise a litre without taxes following the government decision to raise commission paid to petrol pump dealers and firming global oil rates. Diesel rates were also increased by 10 paise per litre.

The two increases will take effect from Saturday.

State-owned oil firms, which restrained themselves from revising petrol price for past seven weeks despite weakening of rupee against US dollar, used the government decision to raise dealer commission on the fuel by 21 paise to effect another 20 paise increase.

At present, petrol in Delhi costs Rs 71.02 per litre. After Friday's revision, it will be priced around Rs 71.50 a litre. The actual rates, which haven't been worked out yet, will vary from city to city.

Diesel rates will go up marginally from Rs 53.67 a litre to about Rs 53.80 in Delhi.

Petrol price, which is normally revised on the 1st and 16th of every month based on the global trend in previous fortnight, were last revised on November 1 when rates were cut by Rs 1.15, excluding local levies.

Indian Oil Corp, the country's largest fuel retailer, said commission paid to petrol pump operators is being raised by 10 paisa on diesel (from Rs 1,089 per kilolitre or 1.089 per litre to Rs 1,186 per kl) and 21 paisa on petrol to Rs 1.95 a litre.

"In addition to above, for petrol, due to strengthening of prices in international markets and slight weakening of rupee, it has been decided to increase retail selling price by Rs 0.20 per litre (excluding state levies)," IOC said in a statement.

Diesel prices were last revised on December 1 following the practice of increasing rates by up to 50 paise a litre every month. Prices in Delhi were hiked by 57 paise, after including VAT, to Rs 53.67 per litre.

Despite monthly increases, oil firms are losing Rs 10.48 per litre on selling diesel at government controlled rates.

Besides, loss on sale of kerosene through PDS system stood at Rs 36.20 a ltire and that on domestic LPG at Rs 542.50 per cylinder.

"For the year 2013-14, the Corporation is expected to incur under-recovery (or revenue loss) of Rs 74,700 crore on sale of three sensitive products (diesel, LPG and kerosene)," IOC said, adding that the industry (IOC, HPCL and BPCL) would end the year with Rs 143,800-crore loss.

The movement of prices in international oil market and rupee-dollar exchange rate is being closely monitored and developing trends of the market will be reflected in future price changes, IOC added.