State-run fuel retailers raise petrol price by 70 paise, diesel by 50 paise

Marking the fifth increase in petrol price since June, state-run fuel retailers on Wednesday yet again went ahead and hiked the price of petrol by 70 paise, besides raising the prices of diesel by 50 paise a litre, both excluding local taxes.

For petrol, the retailers had on June 1, raised price by 75 paise, excluding VAT, and followed it with a steep Rs 2 per litre increase on June 16, a Rs 1.82 increase on June 29 and Rs 1.55 hike on July 15.  With the late hike, petrol price in Delhi will go up by 84 paisa to Rs 71.28 per litre while it will cost Rs 78.61 per litre in Mumbai as against Rs 77.73 currently.

Meanwhile, this is the seventh increase in diesel prices since January. The Government had in January allowed state retailers to raise prices in 'small doses' every month till the gap between pump prices and the fuel's market rates were wiped out.

Though with the latest hike losses on diesel sales should have been wiped off, but the fall in rupee, has worsened the situation and oil firms are losing Rs 9.29 per litre despite prices being raised by a cumulative Rs 3.75 this year. In context with this, Indian Oil Corp (IOC), the nation's largest fuel retailer, expects to end the fiscal with a revenue loss of Rs 1, 28,500 crore on sale of diesel, domestic cooking gas (LPG) and kerosene.