The petrol price has been again increased by Rs. 1.40 per litre by a state-owned oil company, making it the second major fuel price hike in the country, effective from midnight March 1, 2013. Sources suggest that rise in the international fuel prices and Indian National Rupee (INR) depreciation led the oil retailers to embark on a Rs 1.40 per litre increase in price of petrol. The announcement came through a press release by Indian Oil Corporation (IOC), a Public Sector Undertaking (PSU) enterprise and the country's largest oil retailer. The last petrol price increase was Rs 1.50 per litre (excluding VAT) on February 16, 2013.
Further, it must be noted that the latest Rs. 1.40 per litre hike on petrol does not include the local sales tax or VAT, which makes the actual increase a bit heavier on the pockets of Indian consumers. Post this latest development, the petrol price in National Capital is going to be hiked by Rs 1.68, with the new retail value being Rs 70.74 per litre, as compared to the current rate of Rs 69.06. Further, petrol will now cost Rs 77.66 per litre, as against the current price of Rs 75.89 per litre in Mumbai.
Informing about the latest petrol price hike, IOC said in a press statement, “The price increase has been necessitated by two factors -- the international gasoline (petrol) prices have increased from USD 128.57 per barrel to USD 131.00 a barrel since the last revision; and the rupee has depreciated from Rs 53.43 to Rs 54.15 per US Dollar during the period.” The statement also said, “The trends of international oil prices and Rupee-USD exchange rate shall be closely monitored and the same shall be reflected in future price changes.”