Indian Oil Corporation (IOC) announced that the petrol price would be increased by Rs 1.40 which would come into effect from the midnight of Friday.
In a statement, the company said increase in crude oil prices and falling rupee prompted to take this decision.
"International prices have increased from $128.57/bbl to $131.00/bbl since the last revision, and the rupee has depreciated from Rs.53.43 to Rs.54.15 per US Dollar during the period," Indian Oil said in a statement. As the increase was calculated without local sales tax and VAT, so the actual price of petrol may be more than what the company announced. It is the second hike in over two weeks after February 15. The fuel price hiked by Rs 1.50 and diesel by 45 paise.
Apart from losses on petrol, oil companies are also incurring a loss of Rs. 11.26 per litre on the sale of high-speed diesel, a loss of Rs. 33.43 per litre on the sale of PDS kerosene, and a loss of Rs. 439 per cylinder of cooking gas, the statement added. While petrol is a deregulated commodity, the others are not, and the government fixes the selling price of these fuels.
It is reported that the present hike is 21st time after the petrol was deregulated in June 2010, as the oil companies have freedom to enhance the prices. The oil companies revised 28 times, increased 20 times and decreased eight times, reports said.