Oil companies hike petrol prices for second time in fortnight

Oil companies hike petrol prices for second time in fortnight Citing high global prices and decline in Indian currency against the U. S. dollar, state-owned oil-marketing companies (OMCs) announced the second increase in petrol price in the past fortnight.

Oil companies announced an increase of Rs 1.68 a litre in petrol price in Delhi, effective from Friday midnight.

The Indian Oil Corporation (IOC) said in a statement, "The price increase has been necessitated by two factors - the international gasoline (petrol) prices have increased from $128.57 per barrel to $131.00 a barrel, and the rupee has depreciated."

Previously, petrol prices were increased by Rs 1.50 a litre (exclusive of VAT) on February 16. It means petrol prices have jumped by more than Rs 3 a litre in the last fifteen days.

Petrol now costs Rs 70.74 a litre in Delhi, as compared with Rs 69.06 a litre prior to the recent price increase. In Mumbai, the price of the fuel jumped from Rs 75.89 a litre to Rs 77.66 per litre.

People are expected to suffer another brunt of fuel price hike on March 16, when the oil companies will announced the monthly hike of 50 paise a litre in diesel prices.

Oil companies are suffering under-recovery of Rs 11.26 per litre of diesel. On kerosene and LPG, the state-owned companies' under-recoveries are at Rs 33.43 a litre and Rs 439 per cylinder, respectively.

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