Rising conflict in Middle East has started showing its effects in International markets. India, one among top importers of fuel supplies is also steeply affected due to the unrest in Iraq. The price hike is effective from today and excludes VAT and local sales tax. The price shall vary city-wise.
Indian Oil Corp, the largest oil firm in the country said, “Due to Geo-political unrest in the Middle East, there has been significant increase in international oil prices during the past two weeks. The international prices of gasoline (petrol) have increased by more than USD 4 per barrel, and the rupee-US dollar exchange rate has also deteriorated. The combined impact of both these factors has warranted an increase in petrol prices by Rs 1.69 per litre, excluding state levies.”
Oil marketing companies are also bearing losses on sales of kerosene and LPG below the market costs. As of now, Indian Oil has stated that it is loosing about Rs. 33.07 per litre on kerosene and about Rs. 449 cylinder on LPG supplied as cooking gas. Despite the price hike that has been quite frequent in recent times, the oil firms in the country are reportedly loosing out on about Rs. 3.40 Per litre on diesel.
