Petrol & Diesel prices hiked

Discussion in 'Economy & Infrastructure' started by Daredevil, Feb 13, 2013.

  1. Daredevil

    Daredevil On Vacation! Administrator

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    The state-owned oil firms have decided to increase petrol prices by Rs 1 a litre and diesel prices by 50 paise a litre.

    MUMBAI: The common man will have to pay more for fuel prices as the state-owned oil firms have decided to increase petrol prices by Re 1 a litre and diesel prices by 50 paise a litre.

    The Indian basket of crude oil prices has increased by $5 a barrel to Rs 114.7 per barrel, since the fuel prices were last revised on Januray 17, 2013, thus necessitating that the price hike.

    Confirming this move, a board member of an oil firm told ToI, "We have started making losses on petrol again and so the domestic selling prices needs to be aligned with the international crude oil prices. In diesel, we have got government's nod to increase prices by 40 to 50 paise every month, so will follow the directive till the prices product prices align with the international prices."

    Oil firms have started losing Rs 9.22 per lite on sale of diesel, Rs 31.6 per litre on sale of kerosene and Rs 481 per cylinder of cooking gas.

    The international crude oil price for Indian Basket as computed by the Petroleum Planning and Analysis Cell (PPAC) under the Ministry of Petroleum and Natural Gas remained same at US$ 114.68 per barrel compared to prices of $109.9 a barrel during last fortnight. In rupee terms, the crude oil price of increased to Rs 6188.13 per bbl on February 12, 2013 as compared to Rs 5926 during the last fortnight due to rupee depreciation.

    "The benchmark international prices of gasoline have firmed up in the last one month, so we have to increase the petrol prices by about Re 1," said director on board of another Mumbai based oil firm without specifying any timeline.

    "It may be effective tonight, tomorrow, over the weekend or next week. The hike is eminent, but we do not want the dealers to resort to unfair trade practices like hoarding so we will not give the exact date," he added.

    OMCs are currently incurring daily under-recovery of about Rs 400 crore on the sale of sensitive petroleum products like diesel, kerosene and domestic LPG compared to under-recovery of Rs 384 crore per day for the previous fortnight effective from January 16, 2013.

    http://timesofindia.indiatimes.com/...petrol-diesel-prices/articleshow/18483780.cms
     
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  3. nrj

    nrj Stars and Ambassadors Stars and Ambassadors

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    Wasn't it decided to revise/hike rates every fortnight ?

    What he means nod ? These commodities are supposed to be de-regulated.
     
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