Petrol price was increased on Friday by Rs. 1.40 a litre, the second big hike in as many weeks.

A rise in international oil prices and the depreciation in the rupee have necessitated the increase from midnight on Friday, a statement issued by the Indian Oil Corporation said.

The increase excludes local sales tax or VAT, and the actual increase will be higher after including the tax incidence.

The previous hike of Rs. 1.50, excluding VAT, came into effect on February 16.

The increase in Delhi will be Rs. 1.68, and the new rate will be Rs. 70.74 a litre from Saturday, as against Rs. 69.06. In Chennai, the price will increase by Rs. 1.78, to Rs. 73.95. In Mumbai, the price will be Rs. 77.66 against Rs. 75.89. “The price increase has been necessitated by two factors: the international petrol prices have increased from $128.57 a barrel to $131 since the last revision; and the rupee has depreciated from Rs. 53.43 to Rs. 54.15 against the U.S. Dollar during the period,” the statement said.

Apart from losses on the sale of petrol, oil firms are suffering under-recovery on diesel sold at Rs. 11.26 a litre, kerosene at Rs. 33.43 a litre and LPG at Rs. 439 a cylinder. The loss on diesel has risen from Rs. 10.72 a litre on February 16, when its rates were increased by 45 paisa, excluding VAT. – PTI

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