Petrol, diesel to cost more as rupee falls
MUMBAI: Be ready for another round of fuel price hike as oil firms are considering a proposal to increase prices of petrol for the seventh consecutive time and diesel for the eighth consecutive time. Petrol price is likely to cost Re 1 more per litre and diesel price is likely to go up by 50 paise a litre later this month as the global crude price increased to 108.5 per barrel and the Indian rupeeclosed higher at 61.71 on Friday, making imports costlier.
"Yes, we have started making losses on petrol due to falling Indian rupee and there is a case for revision. For diesel, the government has allowed an increase of 50 paise every month till we reach the market prices, but it is not helping as rupee has depreciated very strongly in the last few months and we need a lump sum revision to the tune of Rs 2-3 per litre in diesel ," said director of an oil firm. "There is a need to revise fuel prices. We have proposed to the ministry to allow a lump sum increase in diesel price and the proposal is in consideration ," said R S Butola, chairman , IndianOil.
In rupee terms, the crude price increased to Rs 6680.5 per barrel on August 15 as compared to 6588 per barrel on August 13, making a strong case for a fuel price hike. This was mainly due to a sharp price increase in dollar terms, besides rupee depreciation.
source: http://timesofindia.indiatimes.com/business
"Yes, we have started making losses on petrol due to falling Indian rupee and there is a case for revision. For diesel, the government has allowed an increase of 50 paise every month till we reach the market prices, but it is not helping as rupee has depreciated very strongly in the last few months and we need a lump sum revision to the tune of Rs 2-3 per litre in diesel ," said director of an oil firm. "There is a need to revise fuel prices. We have proposed to the ministry to allow a lump sum increase in diesel price and the proposal is in consideration ," said R S Butola, chairman , IndianOil.
In rupee terms, the crude price increased to Rs 6680.5 per barrel on August 15 as compared to 6588 per barrel on August 13, making a strong case for a fuel price hike. This was mainly due to a sharp price increase in dollar terms, besides rupee depreciation.
source: http://timesofindia.indiatimes.com/business
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