Petrol prices raised by 70 paise per litre; diesel to cost 50 paise more

State-run oil marketing companies, including Indian Oil Corporation Ltd, Hindustan Petroleum Corporation Ltd and Bharat Petroleum Corporation Ltd, have increased the prices of petrol and diesel with effect from the midnight of 31 July/1 August. 

Accordingly, the retail prices of petrol will go up by 70 paise (Rs0.70) per litre (excluding state levies).

Diesel will cost 50 paise (Rs0.50) per litre (excluding state levies) effective midnight of 31 July, IOC, the country's pot public sector refiner and oil marketing company said in a release.

IOC said the increase in fuel prices has been necessitated by an increase in the international price of petrol from $117.19 per barrel to $120.05 per barrel since its previous price hike. Also, the exchange rate of the rupee has only marginally appreciated from Rs60.03 per dollar to Rs59.49 per dollar.

The combined impact of these factors has warranted a price increase of petrol by Rs0.70 per litre. (excluding state levies)

The government, through an order dated 17 January 2013, has allowed OMCs to increase the retail selling price of diesel within a small range every month until the price gets aligned with the market.

Accordingly, OMCS have agreed to limit fortnightly increases, if any, in the selling price of diesel to 50 paise per litre.

Prices of non-branded petrol in metro-cities applicable from midnight of 31 July 2013 will be:

Prices of diesel from midnight of 31 July

Even after the current increase, IOC said, the under-recovery on retail diesel will stand at Rs9.29 per litre.

In addition to diesel, OMCs continue to suffer under-recovery on sale of kerosene (PDS) of Rs33.54 per litre and LPG (domestic) of Rs412 per cylinder.

For the year 2013-14, IOC said, it expects to incur under-recovery of Rs68,000 crore on sale of three sensitive products while the three PSU oil marketers will together incur under-recovery of Rs1,28,500 crore.