Petrol prices up 75 paise per litre, diesel to cost 50 paise more

Public sector oil marketing companies have effected a 75 paise increase per litre of petrol and a 50 paise per litre increase in diesel prices effective midnight tonight.

These increases are exclusive of local taxes and levies, Indian Oil Corporation, the country's largest fuel retailer announced in a release today.

This is the first increase of the current calendar year. State run oil marketing companies fix fuel prices twice in a month.

While the OMCs are free to decide petrol prices, they are allowed to raise diesel prices by a maximum 50 paise per lire at one time.

Since the last price change, international prices of crude oil have increased from about $115 per barrel to about 116.6 per bbl, and the rupee-dollar exchange rate has depreciated from Rs61.88 per dollar to Rs62.00 per dollar.

There is a continued volatility in the international oil prices because of geopolitical and economic developments around the globe, IOC said in a release.

In addition, OMCs have been authorised to increase the retail selling price of diesel within a small range every month until further orders as per a government order dated 17 January 2013, IOC pointed out.

IOC said, even after the current increase, there would still be an under recovery of Rs9.24 per litre of diesel.

IOC said it is also losing Rs37.33 per litre in the sale of PDS kerosene and RS762.50 per cylinder of LPG for domestic consumption.

For the year 2013-14, Indian Oil Corp is expects to incur under-recovery of Rs74,700 crore on sale of three sensitive products, while the three PSU oil marketing companies, including Hindustan Petroleum Corp and Bharat Petroleum Corp, stands to lose a total of Rs1,44,800 crore in the subsided sale of petroleum fuels, the company said.