The regular depreciation in Rupee value against Dollar has made imports costlier, which directly increases the prices of the essential products. As the rupee breaches to 68-mark against dollar, one more bad news is on the way for the car owners. The decline of Rupee and strengthening global oil prices, have increased India's crude oil import bills, hence it seems like the diesel and petrol prices are soon going to touch new heights.
Oil marketing companies have asked the Oil Ministry to raise diesel prices once by at least Rs. 4-6 per litre, to overcome the losses. Recent food security bill will also increase the pressure on the Indian government to raise the fuel prices in order to cut down subsidies or losses. So, soon after the monsoon session, OMCs are likely to increase diesel prices.
Today, the rupee has hit a new low of 68.40 against the US dollar, a fall over 25 per cent since May, which instantly increases the import costs of oil companies. Adding to this, the global crude prices are reaching to its six month high. Oil Market companies such as Hindustan Petroleum and Bharat Petroleum Corp sell diesel, Kerosene and cooking gas at subsidised rates. The OMCs are suffering a loss of about Rs. 10.22/litre on diesel, so it is quite a time when there is an urgent need to raise the diesel prices. In January 2013, the government of India had allowed OMC's to increase diesel prices by up to 50 paise per month.