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Updated: February 15, 2013 22:38 IST

Petrol price up by Rs.1.50, diesel by 45 paise

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Petrol price has been hiked by Rs. 1.50 per litre and diesel by 45 paise a litre with effect from midnight on Friday. File photo
The Hindu Petrol price has been hiked by Rs. 1.50 per litre and diesel by 45 paise a litre with effect from midnight on Friday. File photo

Petrol price has been hiked by Rs. 1.50 per litre and diesel by 45 paise a litre with effect from midnight on Friday.

While petrol rates have been revised in step with the steep rise in international rates, oil firms used the newly accorded freedom to increase diesel price in small dozes to effect the second price adjustment in one month.

The increase announced is excluding local sales tax or VAT and the actual hike for consumers would be more after the incidence of duty is included.

Petrol price in Delhi will go up by almost Rs. 1.80 per litre after taking into account 19 per cent VAT. Diesel rates would go up by 51 paise.

New rates for petrol in Delhi would be Rs. 69.05 per litre, while a litre of diesel will cost Rs. 48.16.

Petrol price was last revised on January 18 when the price was cut by 30 paise to Rs. 67.26 a litre in Delhi.

The reduction in rates on that day coincided with the government decision to give oil firms freedom to raise diesel prices in small monthly dozes to eliminate all of the losses on the fuel. Oil firms hiked diesel price on that day by 50 paise to Rs. 47.65 a litre in Delhi.

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18th hike in fuel prices by UPA government (since 2009). No wonder,petrol cost per liter may soon hit a century.

from:  Bharadwaj Sista
Posted on: Feb 18, 2013 at 10:20 IST

This is not the first attack, already felt the pain...That's what the
Govt. wants us to be.

from:  Arun muthu kumar. P
Posted on: Feb 17, 2013 at 13:44 IST

Nitin N Varia - And what about the fact that it will lead to increase of
public transport fares, increase in food prices, indeed increase in
prices of everything which runs on fuel, which is almost everything we
know. That has a rebound effect which will negatively impact
consumption. Is that good for the economy?

from:  Aritra Gupta
Posted on: Feb 16, 2013 at 14:15 IST

SALUTE THE PM AND THE FM FOR THEIR VERY BOLD DECISION TO WALK THE
TALK IN RAISING THE PETROL AND DIESEL PRICES.

At a time when the opposition is to adverse to anything in the
interest of the country and the media playing a negative role and
dancing to the gallery of the views are doing more harm to the country
.

India’s enemy No.1 is crude that India needs to import and that is 80%
and any changes in the prices of crude directly derails the Indian
economy by rising inflation and rating down grade leading to out flow
of foreign funds and hampers growth. By raising the fuel prices in
tune with the international prices simply means that costlier it gets
it lowers consumption that is the need of the hour. Also less it is
subsidized means less printing of notes and so less inflation and
lower the risk of down grade.
Against all odds at the cost of the PM and FM abuse from all corners
these two gentlemen have had the courage to walk the talk that is most
appreciable. So far for the past two years we have seen only flip flop
and dance and drama but it is only recently these two magicians of
India have proved that they can make miracles for India by saving
India’s rating and bringing India to high growth trajectory.

from:  Nitin N Varia
Posted on: Feb 16, 2013 at 10:38 IST

I don't understand why 1.25 billion Indians cannot understand the
basic fact that LPG and kerosene are noninflationary and can be
replaced by cheapest to free indigenous energy sources like solar /
coal and induction. So LPG and kerosene should be taxed and should not
be subsidized. Motor fuels like petrol and diesel are highly
inflationary, life line of the nation and cannot be replaced by
cheaper substitutes for years to come. So petrol and diesel should be
taxed lightly at the most Rs5 per liter. Even knowing these simplest
facts we are subsidizing cooking fuels to mineral water levels and are
taxing motor fuel to render them under recovered and overpriced.
Petrol price in international market is 132$ per barrel or Rs 44 a
liter same is the story of diesel. So increase LPG and kerosene prices
to reduce petrol and diesel tax. Right prices are Rs 50 per liter for
diesel, petrol and kerosene. LPG should be dispensed at pumps not at
kitchen at Rs 80 per liter.

from:  alok
Posted on: Feb 15, 2013 at 21:37 IST

I'm sure the government must have thought about this: suppose govt hikes diesel rates by re 1, however the transporter union would probably hike their charges 25%-50% more than the diesel price hike in turn increasing the commodity price. Who is gaining here? The oil marketing companies, which eventually are operating at a very thin margin or the government (by saving foreign exchange although decreasing tax) considering that fact the value of money is also decreasing due to inflation.

What is government's strategy here...to sell shares of profitable maharatna companies in stock market effectively changing the pattern of economic structure in the country without applying much thought in an integrated manner for long term prospects.

Effectively, these are speculators who are making windfall profits and they are deciding policies of the govt taking advantage of the prevalent corruption in the system.

from:  Chennaswami
Posted on: Feb 15, 2013 at 20:31 IST
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