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| Petrol costlier by Rs 7.50 | | | Agencies
New Delhi, May 23: Oil companies have hiked petrol prices by Rs 7.54 per litre with effect from Wednesday midnight.
Also, an Empowered Group of Ministers (EGoM) is likely to meet Friday to discuss the pricing of diesel and LPG.
According to sources the price of diesel is expected to shoot up by Rs 5 per litre. With rupee depreciation leading to jump in oil import bill, Petroleum Minister S Jaipal Reddy had yesterday said that there was an immediate need to raise fuel prices.
State-owned oil firms said they will raise petrol price by Rs 6.28 per litre excluding local sales tax or VAT. The hike translates into Rs 7.54 per litre in Delhi.
Following the hike, the price of petrol in Delhi has gone up from Rs 65.64 to Rs 73.18 per litre; in Kolkata the price is up to Rs 77.88 from Rs 70.03 per litre; in Mumbai the price has been hiked from Rs 70.66 to Rs 78.57, and in Chennai, the price has been hiked from Rs 69.55 to Rs 77.53 per litre.
The government had decontrolled petrol prices in June 2010 but rates were last increased on November 4 last year. This despite oil prices rising by 14 percent and 7 percent fall in value of rupee against the US dollar.
Prices of diesel, kerosene and cooking gas were raised in June last year.
State-owned oil firms, which had in the fiscal ending March 31, 2012 lost Rs 4,860 crore on petrol sales, were currently losing Rs 6.28 per litre on petrol. After including 20 per cent VAT, the desired increase in petrol price in Delhi came to Rs 7.54 a litre.
The losses on petrol are besides Rs 512 crore per day that oil firms lose on selling diesel, domestic LPG and kerosene. Diesel is currently sold at a loss of Rs 15.35 a litre, kerosene at Rs 32.98 per litre loss and oil firms lose Rs 479 on sale of every 14.2-kg domestic LPG cylinder.
The three firms had together lost Rs 138,541 crore in revenue in 2011-12. This year they are projected to lose a record Rs 193,880 crore.
During 2011-12, petrol prices were revised five times in order to bring domestic prices in line with prices in the international market. Of these, rates were hiked on three occasions and lowered on two other. The last revision in rates on December 1 was a reduction of Rs 0.78 per litre to Rs 65.64 a litre.
"Thereafter, due to domestic market conditions, it has not been possible to change selling price of petrol in line wtih international prices," Indian Oil Corp (IOC), the largest oil retailing firm in the country, said in a statement.
IOC along with Bharat Petroleum and Hindustan Petroleum lost Rs 4,651 crore in revenue since the last revision.
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