Petrol price cut by Rs 2 per litre, excluding local taxes
The government on March 15, 2013 announced that the petrol prices have
been cut by Rs 2 per litre, excluding local taxes. *Following are
the revised prices of petrol in four metros after oil firms cut
rates, with effect from midnight 15th March 2013t.
State Current Price Revised
(All rates in Rs/litre)
The petrol price was hiked by Rs1.50 a litre on February 16 and by a
further Rs1.40 per litre on March 2. It currently sells at Rs70.74 a
litre in Delhi. Since the last revision, international petrol prices
have come down from $131 to $120 per barrel.
Petrol price to go up by Rs. 1.40 per litre from
March 1, 2013 midnight
New Delhi, March 02, 2013
(IANS): Petrol prices will go up by Rs. 1.40 per litre, excluding taxes, from
midnight on Friday due to the depreciating rupee and a sharp increase in
crude oil prices in global markets, the government-run oil marketing
firms said on Friday. This is the second increase in petrol price in
the past two weeks. It was hiked by Rs. 1.50 per litre February 16, 2013.
The country's largest oil marketing firm Indian Oil Corporation said the
prices have been revised upward due to the depreciation in the value of
rupee and rise in international crude oil prices."The combined impact of these two factors has compelled the company to
revise the prices. The Corporation does not have any other option but to
pass on the increase in motor spirit prices to consumers as the Corporation has already suffered losses on sale of motor spirit during
the year," Indian Oil Corporation said in a statement.
Petrol prices hiked by Rs. 1.50 a litre, diesel by 45 paise
from February 16, 2013
New Delhi, February 16, 2013: Prices of petrol and diesel have been hiked effective
midnight. While diesel prices have been increased by 45 paise per litre, the price of petrol has been increased by Rs. 1.50 per litre.
This hike does not take into account local sales tax or value added tax
(VAT), so the effective hike for consumers will actual work out to more
than the quantum announced. Petrol prices in Delhi will go up by almost
Rs. 1.80 per litre after taking into account a 19 per cent VAT. Dieselrates will go up by 51 paise.
The new price of petrol in Delhi will be Rs. 69.05 per litre, while a
litre of diesel will cost Rs. 48.16 in the capital. Before the hike, petrol cost Rs. 67.26 a litre in Delhi, Rs. 74.72 inKolkata,
Rs. 74 in Mumbai and Rs. 70.26 in Chennai, according to the Indian Oil Corporation, while diesel cost Rs. 47.65 a litre in Delhi,
Rs. 51.51 in Kolkata, Rs. 53.71 in Mumbai and Rs. 50.68 in Chennai.While the increase in the price of diesel is in line with the Oil
Minister Veerappa Moily's mandate to increase the price by 40-50 paise
per litre every month until the losses from selling the nation's most
used fuel at subsidized rates have been completely wiped out, petrol
prices were increased to keep pace with the stubbornly high international crude prices which has risen to almost $110 per barrel.
The price hike is the 20th for petrol since the fuel was deregulated.Under deregulation, oil firms are free to decide the quantum and the
frequency of a price hike. Since petrol prices were decontrolled in June
2010, they have been revised 27 times (increased 19 times and decreased
LPG price hiked by Rs 11.42 on October 6, 2012
Cooking gas (LPG) price was on Saturday (October 6, 2012) hiked by Rs 11.42 per cylinder following government
decision to raise commission paid to the dealers. Petrol and diesel prices too may go up marginally as the Oil Ministry
considers raising dealers commission by at least 23 paisa and 10 paisa a
litre respectively. The Ministry yesterday issued orders raising commission paid to LPG
dealers from Rs 25.83 per 14.2-kg cylinder to Rs 37.25, government officials said.
The 44 per cent or Rs 11.42 per cylinder increase in the commission on the subsidised cooking fuel is being passed on to consumers, they said.
For the consumer, subsidised LPG in Delhi will now cost Rs 410.42 per cylinder, up from Rs 399.
The hike comes within weeks of the government deciding to restrict
supply of subsidised cooking gas to 6 cylinders of 14.2-kg size per household in a year.
The remaining supplies would have to be sourced at market rates.
Officials said the commission paid on market price or non-subsidised LPG too has been raised by Rs 12.17 to Rs 38 per cylinder. Accordingly, a
non-subsidised LPG cylinder price will go up from Rs 883.5 to Rs 921.5. A similar exercise is on to raise commission paid to petrol pump dealers
on sale of petrol and diesel. The Ministry is proposing to raise commission paid on petrol by 23 paisa to 1.72
and that on diesel by 10 paisa to Rs 1.01 a litre.
The hike being considered for petrol and diesel is less than 67 paisa
and 42 paisa respectively being demanded by petrol pump dealers in view
of their working capital cost going up substantially due to frequent
price changes and sharp rise in overheads like electricity charges.
Diesel prices hiked by 5
rupees on September 13, 2012
The government raised the price of heavily subsidised diesel on September 13, 2012 by 5 rupees per litre to rein in its fiscal deficit and counter
the threat of becoming the first of the big emerging economies to be
downgraded to junk. The fuel price increase caused an instant political backlash.
Trinamool Congress, a partner in the ruling coalition, announced a
protest march at the weekend and the Bharatiya Janata Party (BJP) called
the move "financial terror".Protests earlier this year over petrol price and railway fare hikes
prompted Manmohan Singh to partially roll them back. "Nobody wants to put pressure on people but the subsidy bill had risen
so high that this became inevitable," Pawan Kumar Bansal, minister for
parliamentary affairs, told Reuters. "This is an essential step to revive the economy and the investors' confidence."
Diesel is one of the main contributors to a subsidy bill that economists
warn could push the country's fiscal deficit above a target of 5.1 percent of gross domestic product.
Petrol price hiked by Rs. 7.54 on May 23, 2012
The petrol price was hiked on May 23, 2012 by a record Rs. 7.54 per litre
as rupee had a free fall, an unpopular decision that was attacked by allies of UPA government who demanded its immediate rollback holding it
as unacceptable. The hike, the third in one year, came a day after end of the Budget Session of Parliament and Prime Minister Manmohan Singh speaking
of the need to take "difficult decisions" on the third anniversary of
UPA-II. The decision of the oil marketing companies effective midnight May 23, 2012
is the steepest hike in petrol price ever, the previous increase being Rs. 5 per litre.
Petrol price in Delhi has been hiked by Rs. 7.54 per litre to Rs. 73.18
a litre. In Mumbai it will cost Rs. 78.57 per litre as against Rs. 70.66 a
litre. In Kolkata, Rs. 77.88 per litre and Chennai Rs. 77.53 a litre. Oil firms had twice raised rates by Rs. 5 per litre - on May 15, 2011
when prices in Delhi were hiked from Rs. 58.37 a litre to Rs. 63.37 per litre and on May 24, 2008 when rates were raised to
Rs. 50.56 a litre.
Finance minister Pranab Mukherjee maintained that the decision was taken
by oil companies as petrol is a deregulated commodity. The government had decontrolled petrol price in June 2010 but rates were
last increased on November 4 last year. This despite oil price rising by 14.5% and 3.2% fall in value of rupee against the US dollar.
on Tuesday, oil minister S Jaipal Reddy had stated that the depreciation
in rupee had necessitated an immediate increase in fuel prices. But rates of diesel, kerosene and cooking gas have not been revised as a
high-power ministerial panel headed by Finance Minister Pranab Mukherjee
and having representatives of key UPA allies like TMC and DMK, hasn't met for almost a year now. Price of diesel, kerosene and cooking gas were last raised in June 2011.
Pay Rs 2/lt more for petrol from midnight as IOC ups rates
New Delhi, November 3, 2011: Days after the oil minister distanced himself from the question of
another hike in petrol prices, oil marketing companies have taken action. Indian Oil Corporation
has raised petrol prices by another Rs 1.80 per litre from midnight.
Sources tell CNBC-TV18 that other oil marketing companies (OMCs) including HPCL and BPCL too will follow suit and hike prices from midnight.
This hike, OMCs say, is necessary as the Rs 15,000 crore compensation
promised by the Centre is yet to be released. Moreover, a depreciating
rupee as well as the lack of subsidy relief is hurting the liquidity
position of these companies. OMCs continue to lose Rs 333 crore everyday by selling subsidised LPG,
kerosene and diesel.
This is the second hike in petrol prices in less than two months and it
came on a day when the food inflation rose "dangerously" to 12.21% for
the week ended October 22. Oil marketing companies had earlier hiked petrol prices by Rs 3.14 a
litre on September 16 when the rupee was ruling at about 48 to a US dollar. The government had in June last year deregulated or freed petrol
from all price controls but the retail rates have not moved in line with
cost as high inflation rate forced the oil companies to seek 'advice' from parent oil ministry before revising rates.
India raised diesel prices again on September 15, 2011
Government oil companies on Thursday, the
September 15, 2011 hiked petrol price by Rs 3.14-3.32 per litre after decline in rupee's exchange value increased the cost of
buying crude oil and widened losses from fuel sales. Petrol price in Delhi has been hiked by Rs 3.14 a litre to Rs 66.84 per
litre with effect from midnight on Thursday, a press statement issued by Indian Oil Corp, the nation's largest fuel retailer, said.
Separately, an Empowered Group of Ministers headed by finance minister
Pranab Mukherjee is likely to consider tomorrow limiting supply of subsidised LPG cylinders to 4-6 per household in a year.
The move, aimed at cutting the government's fuel subsidy bill by about
Rs 20,000 crore, would result in every household being supplied only 4-6
LPG cylinders at subsidised price of Rs 395.35 in Delhi and they will
have to pay the market price of Rs 666 per bottle for any requirement beyond that.
Petrol price will vary from city to city due to differential rates of
local sales tax. The fuel in Mumbai will cost Rs 3.29 a litre more at Rs
71.28 per litre, while in Chennai the price have been increased by Rs 3.32 to Rs 70.82 per litre.
Current petrol price of Rs 63.70 per litre in Delhi corresponds to crude
oil price of about $103 per barrel. But crude today is at $110-111 per
barrel. This difference coupled with weakening rupee against the US dollar necessitated the increase in petrol price.
This is the second hike in four months. Oil companies had last hiked
petrol price by Rs 5 per litre on May 15.
| India raised diesel prices on June 25, 2011
India raised diesel prices about 9 percent on June 25, 2011 after months of delay, a politically unpopular move that will add
to inflationary pressure but also eases the government's subsidy burden
and could bolster its image among wary investors. The man in the street will be forced to contribute Rs 21,000 crore to
the state coffers by this one swift stroke. The Rs 50 rise in LPG prices has caused anger among housewives.
The increase in diesel prices will add to inflation.
Diesel will now cost just over 41 rupees per litre in the capital after
the government panel raised prices by a record 3.4 rupees (7.6 U.S. cents) per litre including local taxes. It also raised kerosene and
cooking gas prices. In Mumbai diesel rates were increased by Rs 3 to Rs 47.25 per
litre, LPG by a phenomenal Rs 50 per cylinder to approximately Rs 399 and kerosene by Rs 2 per litre.
On May 15, the government had increased petrol prices by Rs 5 per litre.
"The inflationary implications of the diesel price hike are unavoidable.
Broadly, with inflation currently at around 9 percent, the hike in prices should take the WPI (wholesale price index) into double digits
again and keep it there for a while," said Rupa Rege Nitsure, chief economist at Bank of Baroda.
The increases, announced by Oil Minister S. Jaipal Reddy, were roughly in line with expectations.
PRICES AND POLITICS
Diesel accounts for 40 percent of petroleum product demand in India and
is the most widely used transport fuel. It powers tractors and irrigation pumps for farmers in one of the world's biggest producers and
consumers of grains and sugar. Rising diesel prices, the freight rates and cost
of transportation will go up, inflating the cost of all essential
commodities. Buses, Hotels and restaurants are expected to revise rates.
Since the government agreed in principle to lift fuel costs a year ago,
international crude prices have soared 33 percent, swelling the money
spent on subsidising fuel prices to a country with 500 million people living in poverty.
However, world oil prices fell 6 percent on Thursday after major
consuming countries announced an emergency release of stocks, only the
third time ever, and dropped further on Friday. With inflation in India above 9 percent and domestic fuel costs up
nearly 13 percent on the year, raising fuel prices will immediately hit
the fractious coalition's core voters among the poor who live on less than the cost of 2 litres of diesel a day.
Petrol prices, which largely affect more affluent Indians, have gone up about 23 percent since they were freed a year ago.
J.P. Morgan this week cut its forecast for benchmark Brent oil for the
third quarter to $100 a barrel from $130 but on Friday global crude prices paused from losses.
"As this remains a one-off price hike we do not expect demand to take a
major hit," said Praveen Kumar, senior consultant at FACTS Global Energy in Singapore.
The longer-term benefit to the country's finances comes from reducing
massive spending on subsidies and boosting revenues for state-run fuel retailers Indian Oil Corp, Bharat Petroleum Corp and Hindustan Petroleum
Corp. Private oil refiners Reliance Industries, owner of the world's biggest
refining complex, and Essar Oil could now find it attractive to sell in the local market instead of relying on exports. Revenue losses for oil companies will shrink to about 1.2 trillion
rupees ($26.7 billion) in the current financial year from 1.7 trillion
rupees estimated before the hike, Reddy said. Cutting customs duty on crude and petrol products and reducing excise
duty on diesel will result in a total revenue loss to the government of about 490 billion rupees this