Petrol price hiked by Rs 1.82 a litre

Oil firms had on June 1 raised prices by 75 paise, excluding VAT, and followed it with a Rs 2 per litre increase on June 16

The price of petrol was raised on Friday by Rs 1.82 a litre, the third increase in rates this month, as a falling rupee made imports costlier. An increase in diesel rates is expected early next week.

The rise excludes local sales taxes or value added tax (VAT), with effect from midnight. The increase will vary from city to city, depending on local taxes. Petrol in Delhi was  raised by Rs 2.19 a litre to Rs 68.58 from Saturday, as against Rs 66.39 currently.

This is the third increase in rates this month. Oil firms had on June 1 raised prices by 75p, excluding VAT, and followed it with a Rs 2 a litre increase on June 16.

The revision in prices in line with the practice of changing rates with cost every fortnight, was due on Sunday but was done on Friday.

The price of diesel, too, is likely to be raised by 40-50p a litre early next week, in accordance with the government mandate for small doses of increase every month.

In Mumbai, petrol has been increased by Rs 2.30 to Rs 76.90, while in Kolkata rates went up from Rs 73.79 to Rs 76.10 per litre. In Chennai, prices were hiked by Rs 2.32 to Rs 71.72.

This week's increases have almost negated the four reductions this year that had brought down the rates to Rs 63.01 at the beginning of May.

"Since the last price change, the downwards slide of rupee has continued and the dollar-rupee exchange rate has deteriorated from Rs 57.08 to a dollar to Rs 58.94 during the fortnight," Indian Oil Corp said, announcing the increase in rates.

International crude oil prices have increased from $113.84 a barrel to $115.29 a barrel since the earlier price change.