The Oil Marketing Companies (OMCs) in India might be planning to increase the price of petrol by 50-60 paise from December 16 due to the continuing fall in the value of the rupee and increase in crude prices in international markets.
The fall of the rupee to the psychological 54 against the dollar is the major reason for the increase in the prices. The low value of the Indian currency has increased the price of imports. The companies are expected to review the prices today and decide the price of the petrol.
The companies had earlier reduced the price of petrol by Rs. 2.22 per litre from November 16 and by Rs. 0.78 per litre from December 1. Following the deregulation of pricing of petrol, the companies review international prices every fortnight and device on the petrol prices. The price of gasoline in Singapore averaged US$ 111.11 per barrel compared to US$ 108.25 a barrel earlier.
The increase in petrol prices, even though a small one, is expected to anger opposition parties during the ongoing parliament session and might even lead to protest in what has been a turbulent winter session for the country’s parliament.