BOOO – A Real Life Ghost is back. A big shocking news for the common man, the petrol prices were on today (23/05/2012) underwent the steepest ever increase of Rs 7.50 per litre, which would be effective from midnight. This isn’t a myth that folklores are made of, as the petrol monster strikes again after a good 6 months. Since the new prices will be effective midnight, a large number of people have rushed to the petrol stations to get their car’s tank full.
This increase was on the cards with the rupee continuing its free fall against the US dollar. The rupee fell to a record life low of 56 per dollar on today. The hike translates into Rs 7.50 per litre in Delhi and is the steepest ever. Petrol in Delhi currently costs Rs 65.64 a litre and after the increase it will be priced at Rs 73.14 per litre.
India’s largest oil firm, Indian Oil Company, released a statement stating, “Given the losses being incurred, the company is compelled to increase the price of petrol by Rs.6.28 per litre (excluding VAT/Sales Tax) with effect from midnight. This excludes losses already suffered till date during current financial year 2012-13, which would require an additional increase of around Rs. 1.50 per litre in selling price of motor spirit (MS) for balance part of the year.”
Meanwhile, there has been greater resentment among the public as well as the opposition parties against the petrol price hike and it is expected that the government will be bringing down the hike from Rs 7.50 per litre to around Rs 3-4 per litre tomorrow. But in case the price rise remains intact, it will be the highest increase ever and is sure to have a deepest impact on car sales in India.