Sharp depreciation of rupee have forced the state run fuel retailers to hike petrol prices for the third time this month by Rs 1.82 a litre, excluding local sales tax or VAT, on Friday midnight. Oil firms had on June 1 first raised petrol prices by 75 paise, excluding VAT and then followed with steep Rs 2 per litre hike on June 16. Thus, with this latest hike, petrol price, in Mumbai, have been increased by Rs 2.30 to Rs 76.90 while in Kolkata rates is up from Rs 73.79 to Rs 76.10 per litre. In Chennai, prices are hiked by Rs 2.32 to Rs 71.72. Most importantly, latest increase negated the four reductions this year till May.
However, this is not the only factor which would burn a hole in one’s pocket, diesel prices too are set to be raised by 40-50 paise per litre by this week in accordance with the government's January decision to gradually move to market pricing with gradual hikes.
The depreciating rupee has prompted widening of losses on diesel and cooking fuel. Oil firms are now losing Rs 8.60 per litre on diesel compared to Rs 6.31 previously. Diesel prices, uptill now, have been hiked on five occasions since January when the government authorized state-owned oil firms to increase prices by up to 50 paisa per litre every month till entire losses on the fuel are wiped out. Besides, Oil firms are losing Rs 30.53 per litre on kerosene sold through public distribution system and Rs 368.50 per 14.2-kg cooking gas cylinder.
However, this is not the only factor which would burn a hole in one’s pocket, diesel prices too are set to be raised by 40-50 paise per litre by this week in accordance with the government's January decision to gradually move to market pricing with gradual hikes.
The depreciating rupee has prompted widening of losses on diesel and cooking fuel. Oil firms are now losing Rs 8.60 per litre on diesel compared to Rs 6.31 previously. Diesel prices, uptill now, have been hiked on five occasions since January when the government authorized state-owned oil firms to increase prices by up to 50 paisa per litre every month till entire losses on the fuel are wiped out. Besides, Oil firms are losing Rs 30.53 per litre on kerosene sold through public distribution system and Rs 368.50 per 14.2-kg cooking gas cylinder.
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