Petrol price hiked by 75 paise per litre, diesel to cost 50 paise more

State owned oil marketing companies (OMCs) today announced an increase of 75 paise per litre of petrol and 50 paise per litre of diesel with immediate effect, after a series of reductions in the price of petrol totaling Rs6.60 a litre since 1 April,

OMCs attribute the price hike to depreciating Indian rupee, which hit 10 month low, making the import of crude oil costlier.

The management of Indian Oil Corporation (IOC), Hindustan Petroleum Corp ( HPCL) & Bharat Petroleum Corp ( BPCL) in a meeting in New Delhi decided on the revision in the petrol and diesel prices, which was approved by the oil ministry.

Private refiners Reliance Industries (RIL) and Essar Oil are also likely to follow the suit.

Oil marketing companies are revising the petrol prices according to the international market prices after the government deregulated petrol fully and diesel prices partially.

The Indian basket of crude oil has fallen to $100.27per barrel on 30 May 2013 compared to average price of $101.21 during fortnight of 1-15 May 2013. However, in rupee terms, the price has gone up by Rs146 to Rs5,625 as of 30 May compared to the last fortnight, thus necessitating the hike.