Petrol, diesel prices up on rupee weakness, hardening global rates

NEW DELHI: State-run fuel retailers would raise petrol and diesel prices by 75 and 50 paise, respectively, a litre from Saturday to offset the impact of increase in global oil prices and fall rupee's exchange rate against the US dollar. Consumers would, however, have to pay a little more at the pumps due to the incremental increase in state taxes and vary in each state. Petrol would cost Rs 72.43 a litre in Delhi, up 91 paise from Rs 71.52 currently. Diesel price would go up by 56 paise, including tax, to Rs 54.34 per litre in Delhi. Petrol price had gone up by 41 paise, excluding VAT, on December 21 as the government raised commission for dealers. Diesel price increase is in line with the January 2013 decision of the government to raise rates in small doses every month till the gap between the government-controlled pump price and market rate is wiped out. Diesel price was last hiked by 10 paise on December 21 when the commission paid to petrol pump dealers was increased. Prices have gone up by over Rs 7 since January 2013 but the oil companies are still incurring Rs 9.24 per litre loss on each litre of the fuel they sell. "Since the last price change, international prices of gasoline (petrol) have increased from $115 per barrel to $116.6 a barrel and the rupee- dollar exchange rate has depreciated from Rs 61.88 to Rs 62.00," IndianOil said in a statement. The price revision was due on January 1 but the retailers did not change for fear of drawing flak from the public for spoiling the festive mood. Besides diesel, the state-owned oil firms are losing Rs 37.33 a litre on sale of kerosene through ration shops and Rs 762.50 per 14.2-kg subsidised cooking gas cylinder. "For 2013-14, IndianOil is expected to incur under-recovery (revenue loss) of Rs 74,700 crore on sale of three sensitive products," the statement said, adding that the industry would end the year with Rs 144,800 crore loss.   TOI