On account of rise in global oilrates and fall in rupee value, the oil marketing companies have raised Petrolprices by 75 paise and diesel by 50 paise a litre. These hikes, effective fromJanuary 3 midnight, are excluding local sales tax or VAT and actual increasewill be higher and vary from city to city. Much against the buzz of governmentholding back the hike in fuel prices on account of upcoming general elections2014. The price revision was due on January 1, 2014, but the retailers did notchange for fear of drawing flak from the public for spoiling the festive mood.
Petrol price, which was lasthiked by 41 paise excluding VAT on December 21 as government hiked thecommission to be paid to petrol pump dealers, will now cost Rs 72.43 a litre inDelhi, up 91 paise from Rs 71.52 current. Meanwhile, the price of diesel willbe hiked by 56 paise, including tax, to Rs 54.34 per litre in Delhi and willcost Rs 61.42 a litre in Mumbai as against Rs 60.80 currently. Earlier, dieselprices were hiked by 10 paise on December 21.
Diesel price increase is in linewith the January 2013 decision of the government to raise rates by up to 50paise per month till such time that the entire losses on the fuel are wipedout. Since last January, diesel rates have risen by a cumulative Rs 7.19 thisyear. Even after taking intoconsideration of current rate hike, under recovery (loss) on diesel shall standat Rs 9.24 per litre. Besides diesel, the state-owned oil firms are losing Rs37.33 a litre on sale of kerosene through public distribution system (PDS) andRs 762.50 per 14.2-kg domestic cooking gas (LPG) cylinder.
Petrol price, which was lasthiked by 41 paise excluding VAT on December 21 as government hiked thecommission to be paid to petrol pump dealers, will now cost Rs 72.43 a litre inDelhi, up 91 paise from Rs 71.52 current. Meanwhile, the price of diesel willbe hiked by 56 paise, including tax, to Rs 54.34 per litre in Delhi and willcost Rs 61.42 a litre in Mumbai as against Rs 60.80 currently. Earlier, dieselprices were hiked by 10 paise on December 21.
Diesel price increase is in linewith the January 2013 decision of the government to raise rates by up to 50paise per month till such time that the entire losses on the fuel are wipedout. Since last January, diesel rates have risen by a cumulative Rs 7.19 thisyear. Even after taking intoconsideration of current rate hike, under recovery (loss) on diesel shall standat Rs 9.24 per litre. Besides diesel, the state-owned oil firms are losing Rs37.33 a litre on sale of kerosene through public distribution system (PDS) andRs 762.50 per 14.2-kg domestic cooking gas (LPG) cylinder.
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