Petrol price has been hiked by Rs 1.50 per litre and diesel by 45 paise a litre with effect from midnight on Friday, as state-owned oil companies exercised newly bestowed pricing freedom.
Petrol price in Delhi will go up by Rs 1.80 to Rs 69.06 per litre with effect from midnight tonight after including 19 per cent VAT. Diesel rates would go up by 51 paise to Rs 48.16 a litre.
The increase in auto fuel prices, which come on back of a small hike in diesel price last month, is expected to fuel inflation that stood at three-year low of 6.2 per cent in January.
Indian Oil Corporation (IOC), the nation’s largest fuel retailer, announced an increase of Rs 1.50 per litre in petrol price as international benchmark oil prices climbed 7.5 per cent.
The diesel rate was raised in line with last month’s government decision to allow oil firms to raise prices in small dozes every month till over Rs 10 a litre loss on sale of India’s most consumed fuel is totally eliminated.
Even after today’s increase and a similar hike effected on January 18, oil firms will continue to lose Rs 10.27 a litre on diesel as cost of raw material (crude oil) has risen by 4 per cent to $113.24 per barrel.
Also see – Petrol prices increased by 35 paise