Fuel retailers to raise gasoline, diesel prices

REUTERS - State fuel retailers plan to raise petrol prices by about 2.7 percent and diesel by about 1 percent from Saturday due to rising global crude prices, officials at the companies said on Friday.

Three state-run fuel retailers - Indian Oil Corp , Bharat Petroleum Corp and Hindustan Petroleum Corp - tend to move their prices together.

India liberalised petrol prices in June 2010, but the government continues to unofficially dictate prices to refiners.

India said last month it would allow fuel retailers to raise the price of subsidised diesel by 1 U.S. cent a litre every month and asked bulk buyers to pay market rates.

While an IOC spokeswomen said her firm was still calculating the retail prices, sources at the other two refiners said a litre of gasoline will cost an extra 1.79 to 1.80 rupees a litre in Delhi and that diesel will be sold at 48.16 rupees a litre.

IOC in a statement said the price of a litre of petrol will increase by 1.50 rupees excluding local taxes, and diesel by 0.50 rupees.

Petrol prices of the three firms vary marginally, while diesel costs the same at their fuel stations.

(Reporting by Nidhi Verma; Editing by Sunil Nair and Jane Baird)