Diesel and petrol prices to be hiked this week in India?

Diesel and petrol prices to be hiked this week in India?

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There is a high chance that the state-run oil companies in India might increase the prices of petrol by Rs. 1 per-liter and that of diesel by Rs. 0.50 per-liter. These prices can be increased further if the companies get an informal nod from the oil minister Veerappa Moily, who has just returned from a trip to the United States on February 13, 2013.

petrol

The companies are free to charge market rates for petrol and diesel and can raise the prices by 40 paise to 50 paise every month, until they are aligned with the global rates. However,  the companies still want the green signal given by Moily, so as to avoid accusations of disrupting the budget session of the parliament, which is set to begin next week.

At present, the companies are suffering a revenue loss of Re. 1 per liter on petrol and Rs. 10 on a liter on diesel due to the northward movement of global crude oil prices. The chairman of Indian Oil RS Butola said that the oil marketing companies will review the auto fuel rates this week.

Butola,while talking to reporters said, “We are following fortnightly (petrol and diesel pricing) cycle. That will be the time when we will again review prices”. The Indian Oil chairman also said that there was a decline in the sale of bulk diesel which was being sold at market rates since January 17, 2013.

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