Petrol Prices hiked by Rs 1.63/litre

Oil marketing companies in India hiked the petrol prices by Rs 1.63 per, which is the seventh increase since June. The oil companies had to take this tough decision due to rising oil prices and the falling rupee.

The 1.63/litre price is excluding tax, so if the local sales or VAT will be added, it will go up by Rs 1.96 in Delhi, taking the per litre price to Rs 76.06. While the petrol will now cost Rs 83.63 and Rs 81.57 per litre in Delhi and Mumbai. The new prices will be effective from Saturday midnight.

A statement justifying the hike in petrol price reads as "During first fortnight of September'13, average International prices of Petrol have gone up from $ 114.44/ bbl to $ 117.40/bbl. The average INR USD Exchange rate has also deteriorated further from Rs. 63.88/$ to Rs. 66.02/$. To give effect to these twin reasons, the Corporation is required to increase Petrol prices by Rs. 1.63 (excluding VAT) w.e.f. midnight of 13th-14th September 2013."

The INR-USD exchange rate which has got a little stable might bring the price down in coming months, and if the trend continues to be like this, the beneficial effect of the same will be passed on to the consumers in the next fortnight, says IOC. Petrol has seen a rise of total Rs 10.80/litre since June (excluding VAT). While if the state/vat tax are added, Delhi alone has inspected a rise of Rs 13.06/litre in the petrol prices, since June 2013.