IOC increases petrol price by 27 paise a litre

Public sector oil marketing company Indian Oil Corporation (IOC) will raise prices of petrol by 27 paise a litre, effective midnight tonight — for the first time since decontrolling petrol prices.

Accordingly, every litre of petrol would now cost Rs 51.83 in Delhi, said an official at IOC, the biggest oil marketing company. Hindustan Petroleum, another state-run oil marketer, is also expected to increase prices in the same range in a day or two. Bharat Petroleum, however, has not decided on an increase.

The government had decontrolled petrol prices from June 26 this year. Prior to this, the government used to regulate petrol prices and usually, the oil companies were directed to sell at a revenue loss

The June 26 move had caused an immediate price increase of Rs 3.50 a litre. Other major petroleum products like diesel, kerosene and domestic LPG continue to remain under control even though the government had said in June that diesel prices would be freed.

At a meeting in July, the companies had decided that they would review petrol prices on a monthly basis, unless there was a sharp fluctuation in the prices of crude oil and international petrol. However, no increase was made after the meeting.