Tag Archives: Litre

Petrol price cut by Rs 2 per litre, excluding VAT

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The cut in petrol price follows two rounds of hike in rates since February

Petrol price was on Friday cut by Rs 2 per litre with effect from midnight tonight, the steepest reduction in rates in nine months. While petrol price has been cut by Rs 2 per litre, excluding local sales tax or VAT, there will be no change in diesel rates.

After including VAT, the reduction in price of petrol in Delhi comes to Rs 2.40 per litre and the fuel will from midnight tonight cost Rs 68.34 per litre as against Rs 70.74 currently. It was expected that oil firms will also effect the monthly hike of 40-50 paise per litre in diesel rates but they deferred the decision apparently to save the government from trouble in Parliament.

When oil firms had last hiked petrol price on 2 March, opposition parties had disrupted one full day’s proceedings. The cut in petrol price follows two rounds of hike in rates since February. Petrol price was hiked by Rs 1.50 a litre on 16 Feb and then by Rs 1.40 per litre from 2 March. Both were excluding VAT.

The reduction in rates was possible as international oil prices have eased. While the slide in international prices of crude oil from $112.73 per barrel to $107.41 enabled reduction in petrol prices, it also helped lower losses on diesel sales. Losses on diesel have come down to Rs 8.64 per litre from Rs 11.26 at the beginning of the month, according to Indian Oil Corp (IOC) which announced the price revision. Oil firms calculate the desired retail price on 1st and 16th of every month based on average imported oil price on the previous fortnight. Petrol price had last been cut by over Rs 2 per litre in June 2012 when prices were reduced from Rs 70.24 to Rs 67.78 per litre. IOC said rupee had depreciated marginally. ‘Following this trend, it has been decided to pass on the benefit to customers,’ the company said.

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Align Domestic Fuel Prices with Global Rates: President

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Close on the heels of steep increase in diesel price and cap on supply of subsidised LPG, President Pranab Mukherjee said greater alignment of domestic rates with global prices was in the interest of both consumers and investors.

A steep 5.62 per litre hike notwithstanding, diesel continues to be sold at a discount of 11.05 per litre to its actual cost as international rates continue to rule high.

“In the present international environment of rising petroleum prices, greater alignment of prices to global prices is in the interest of both consumers as well as investors,” Mukherjee said inaugurating the 10th edition of Petrotech Oil & Gas Conference.

“Government of India is committed to adopt a time-bound programme to achieve this,” he said.

The government had in June 2010 freed petrol price from its control and agreed to free diesel rates in a calibrated manner.

“Just like financial markets, the world energy markets are inherently global and interdependent, and no single country can isolate itself from the market,” the President said in an apparent reference to India’s dependence on world markets to meet its energy needs.

India’s oil import bill, he said, has crossed $150 billion as it imports 75 percent of its needs.

“For a GDP growth of over 8 percent during India’s 12th (Five Year) Plan, it would be imperative for us to ensure better demand management in our country,” he said. “There must be increased understanding of the fact that the path to a more sustainable future will require our society to make a better balance between its energy consumption visa visits cost and availability.

Source: PTI

Petrol Prices Likely to Go Up by 1.82 Per Litre This Fortnight

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Petrol prices are likely to be increased by Rs 1.82 a litre this fortnight as a fall in rupee has increased the cost of imports of the raw material (crude oil). This will be the second hike in petrol prices in as many months.

Though the pricing of petrol was freed from government controls in June last year, state-owned oil firms ‘informally’ take directions from the oil ministry. It remains to be seen if the government will concede to the demand of oil companies just before the winter session of Parliament.

State-owned oil companies Indian Oil, Hindustan Petroleum and Bharat Petroleum last 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 local currency has depreciated further and is now trading at over 49 against the American unit.

“From today, there are some losses on petrol. To cover them, we may have to increase prices,” HPCL director (finance) B Mukherjee told reporters in New Delhi.

He said crude oil is hovering at around $108 per barrel in international markets. At current exchange rate, petrol price of Rs 66.84 per litre in Delhi corresponds to about $102 per barrel equivalent of crude oil price.

Mukherjee did not say when petrol price would be hiked.

“We are in consultations,” he said without elaborating.

The loss on petrol at present is Rs 1.50 per litre and after including local levies, the desired increase in retail prices is Rs 1.82 per litre.

“Let’s say, we are toying with the idea,” he said.

“It may happen. We will see.”

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