Rupee-dollar value based fuel prices unacceptable, says Jaya

TN chief minister says reason given for the rise by oil companies not justifiable

Tamil Nadu Chief Minister J Jayalalithaa has asked the Centre to instruct petroleum companies to withdraw rise in petrol and diesel prices which came into effect from last night.

In a statement issued today, Jayalalithaa said the reason given by oil companies for fuel price increase citing rupee-dollar exchange fluctuation is not justifiable.

She also cited crude oil prices in the international market were unchanged.

Centre's decision to increase excise duty on petrol and diesel by Rs 1.60 and 40 paise per litre respectively last week is not right, she added.

The oil companies on Sunday increased the prices of petrol and diesel by 36 paise and 90 paise respectively.

"It is unacceptable to decide the prices of fuel based on the exchange rate and the dollar prices would change depending the demand for it," she said, while demanding for roll back of the recent fuel price hike, she also urged the Centre to change the manner of pricing oil.

Oil major Indian Oil Corporation on Sunday announced hike in petrol and diesel prices.

"The current level of international product prices of petrol and diesel and INR-USD exchange rate warrant an increase in prices, the impact of which is being passed on to the consumers with this price revision," Indian Oil said in a statement on Sunday.

Price of petrol per litre from Monday will be Rs 61.06 in Delhi, Rs 66.39 in Kolkata, Rs 68.13 in Mumbai and Rs 61.38 in Chennai. Diesel will cost Rs 46.80 a litre in Delhi, Rs 50.29 in Kolkata, Rs 54.04 in Mumbai and Rs 48 in Chennai.