The oil marketing companies have now increased the petrol prices by 70 paisa per litre and diesel prices by 50 paisa per litre (excluding local taxes or VAT). This is the fifth hike in petrol prices in past two months, whereas the diesel prices have been increased seven times since government partially de-controlled the diesel prices. Since June, the petrol prices have been increased by a cumulative Rs. 6.82 per litre, while the diesel prices went up by Rs. 3.75 this year. OMCs review the prices of petrol twice in a month. The petrol prices were de-controlled since June 2010, and the prices are now based on market conditions. The diesel is still under government control, allowing only minor revisions.
On in July, the OMCs increased the petrol prices by Rs. 1.55 per litre. The regular fall in the value of Rupee against the Dollar has forced the oil firms to increase fuel prices, as OMC's buy cruse in dollars. On Wednesday, the value of Rupee against the US dollar closed at 60.40, becoming the worst performing Asian currency, it registered almost 10 per cent downfall in the past three months.
City wise Petrol and diesel prices
Delhi - Petrol Rs. 71.28, Diesel Rs. 51.40
Mumbai - Petrol Rs. 78.61, Diesel Rs. 58.23
Kolkata - Petrol Rs. 78.64, Diesel Rs. 55.74
Chennai - Petrol Rs. 74.49, Diesel Rs. 54.76