Recently petrol prices were hiked by Rs 3.14-3.32 per litre. Now this is the third hike in petrol prices in six months. Every now and then, we keep getting the holes in our pockets getting bigger and bigger!
This time, in first week of November 2011, the Indian oil companies are yet again discussing the price rise of Petrol in India. In past one year, the prices of petrol have been revised multiple times. This time, the reason cited for a rise is the weakening Rupee value and appreciating crude oil price. As per the initial discussions, the petrol prices will go up by about Rs. 1.82 per litre in India.
“We are at present losing Rs 1.50 a litre on petrol…To make up for this loss a desired increase in retail price should be at least Rs 1.82 a litre”, Hindustan Petroleum Corporation Ltd, Director-Finance, Mr B. Mukherjee said.
This price rise is further going to burden the already burdened middle class of India which is trying hard to deal with the ever increasing inflation, interest rates, slowdown in economy and rising petrol prices. For Indian car companies, it will mean more demand for diesel cars and for small car buyers, this petrol price hike will most likely delay their purchase decision.
Also see – Petrol prices go up by Rs 3 a litre