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Updated: November 1, 2011 23:57 IST

Yet another increase in petrol price likely

Sandeep Joshi
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Petrol is currently being sold at the rate of Rs. 66.84 per litre in Delhi. File photo.
The Hindu Petrol is currently being sold at the rate of Rs. 66.84 per litre in Delhi. File photo.

It will be the fourth this year; last revision was in September

Oil marketing companies are mulling a Rs.1.50 a litre hike in the price of petrol, the fourth this year, thanks to a falling rupee that has increased the cost of imported crude oil. And the high rates of levies on petrol will mean an effective hike of over Rs.1.80 per litre.

It was in September this year that the State-owned oil marketing companies (OMCs) — Indian Oil, Bharat Petroleum and Hindustan Petroleum — increased petrol price by Rs.3.14 a litre (including taxes) when the rupee was trading at around 48 against a U.S. dollar. However, in recent weeks, the rupee has further depreciated to 49 a dollar, putting exchange rate pressure on import of crude oil.

“From today, there are some losses on petrol. To cover them, we may have to increase prices. The loss on petrol at present is Rs.1.50 per litre… After including local levies, the desired increase in retail prices would be Rs.1.82 per litre [in Delhi],” HPCL Director (Finance) B. Mukherjee told journalists here. He, however, did not give any date for the proposed hike. “We are in consultations,” he said. In the international market, crude oil price is hovering around $108 a barrel, while the price of the India basket is $106.65 a barrel as on October 31, 2011. Since the government deregulated petrol price in June 2010, the OMCs “informally” seek clearance from the Centre before announcing a hike.

In May this year, when the OMCs went for a Rs.5 a litre hike (the highest in recent years), it had sought an increase of Rs.10.50 to meet its under-recoveries.

The OMCs have raised petrol price thrice in 2011 – in January by Rs.2.50 a litre (against the desired hike of Rs. 3.72), in May and in September. Earlier, in December 2010, petrol price was increased by Rs.2.96 a litre against the desired hike of Rs. 4.90. Today, the per litre petrol price in Delhi is Rs.66.84 which could go up to Rs.68.66 post hike. The increase will be slightly more in Chennai, Mumbai and Kolkata due to the higher State taxes. Petrol price in these three metros today is Rs.70.82, Rs.71.92 and Rs.71.28 respectively.

The rise of petrol prices would affect only the middle class who use two wheelers for transportation. This government protects the upper class who own luxurious cars which are run by diesel and are least bothered about the middle class. The middle class should make the government understand that only we are affected by this price hike.

from:  Guna
Posted on: Nov 2, 2011 at 16:52 IST

It seems the petorl is bearing the brunt for losses of the company. Car sales in Maruthi have slumpled. The decline in sales petrol based cars will be proportional with each hike of petrol.

from:  Sudhakar
Posted on: Nov 2, 2011 at 11:36 IST

when other countries are giving petrol for around rs55 we r paying a lot.almost rs20/ltr excess is not accountable.as the govt is just chargin excesses common man is suffering from it.the so calles oil prfits for the govt is earned by looting and burdening the people its supposed to protect.shame on the govt and its policies

from:  mahesh
Posted on: Nov 2, 2011 at 11:34 IST

This shows the poor governance which Premji was talking about. They say the Petrol prices are deregulated !!! But its always increasing and there is no decrease when the international prices are decreasing!! Why is this??? Can anyone explain? I seriously cant understand. For the Oil companies and governments to make profit, people are the scapegoats.!

from:  Arvind
Posted on: Nov 2, 2011 at 08:34 IST

A CRY IN THE WILDERNESS : at least now, please wake up- stop the free supply of imported petrol for the jolly rides of the rich, students, and even minor children. stop the free travels of government paid air trips of the ministers and MPs. ration petrol to the private cars and two-wheeler and the office goers at least share the vehicles if not compelled to go by public transport- BUT it is not possible because of the neglect of the public transport systems by the governments which can stage formula One car race for a selected few when 60% of the Indians remain without proper road- The hike in diesel price would follow- stop the chain reactions of the oil price hikes till every Indian gets at least the basic amenities of electricity, water, sanitary and medical facilities, proper roads- control the supply of the petrol and diesel.

from:  Ramachandran
Posted on: Nov 2, 2011 at 08:26 IST

Why do the Govt shirk away from price hikes saying it cannot do anything about it since it is regulated by international crude oil prices? Its common knowledge that India has one of the highest petrol price in the World because of the enormous tax the Govt charges. In India the taxes total approx 40% of the net charge as compared to 15% in the US. If the Govt is really interested in doing something to reduced the price, it should lower taxes on par with other countries. The media also never seems to note this discrepancy while reporting.

from:  Mani
Posted on: Nov 2, 2011 at 00:47 IST
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