Mumbai: Petrol price was on Friday hiked by Rs 3.13 a litre and diesel by Rs 2.71 per litre, the second straight steep increase in rates this month. The hike, which comes on the back of Rs 3.96 per litre increase in petrol and Rs 2.37 a litre raise in diesel from May 1, will be effective from midnight on Friday.
Since last price change, there has been a steep increase in international prices of both petrol and diesel. INR-USD exchange rate has also depreciated quite significantly during this period. Combined impact of both these factors warrant an upward revision in prices, the impact of which is being passed on to the consumers with this price increase,” Indian Oil said in a statement
The latest round of increase indicates the government’s resolve to stick to deregulation in a bid to reduce subsidy and subsequently, keep the fiscal deficit under control. State fuel retailers revise petrol and diesel prices on 1st and 16th of every month on the basis of average imported cost and rupee-dollar exchange rate in the previous fortnight.
Fuel prices were last revised on April 30 when petrol prices were hiked by Rs 3.96 per litre while diesel prices were increased by Rs 2.37 a litre. Oil companies review global crude prices every fortnight and revise fuel prices accordingly.
Bureau Report
Leave a Reply