State-owned Indian Oil Corp (IOC), the nation's largest fuel retailer, on Monday hiked petrol prices by Rs 0.32 a litre with effect from midnight tonight in line with rise in cost of crude. IOC follows sister PSU concern, Hindustan Petroleum Corp Ltd (HPCL), which has raised petrol price by Rs 0.31 a litre already effective from Monday.
This is the fourth increase in petrol prices since June 25 when the government gave oil firms freedom to price the fuel in step with cost. "We are increasing petrol price because of sharp rise in price of crude oil," IOC Chairman B M Bansal said.
Petrol in Delhi currently costs Rs 52.59 a litre and will cost Rs 52.91 a litre from midnight tonight. In the previous three increases on September 8, September 21 and October 17, IOC had raised petrol price by a total of Rs 1.16 per litre.
"Today's hike is less than the Rs 1.1 per litre that we currently lose on selling petrol," another company official said.
"We are moderating the increase." International crude oil, the raw material for petrol, have climbed to $87 per barrel from $81-82 a barrel at the time of last revision in October.
Petrol in Mumbai will cost Rs 57.35 per litre as against Rs 57.01 currently, while in Kolkata rates have been increased by Rs 0.34 to Rs 56.81 a litre. In Chennai, the rates have been increased to Rs 57.44 per litre from Rs 57.09.
Bharat Petroleum Corp Ltd (BPCL), the third state-owned firm, will also increase petrol price by an almost equal quantum from midnight tonight. The three oil companies no longer revise petrol prices in tandem to avoid being accused of acting as a cartel and their prices vary marginally.
Diesel, however, continues to be sold at subsidised rates. Its price at Rs 37.75 per litre is Rs 2.95 lower than imported cost and IOC was losing Rs 26 crore (Rs 260 million) per day on diesel sales, the official said.
