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Indian Oil Corporation today announced Rs 1.63 (excluding VAT) increase in petrol prices from tonight. This is the second hike this month after it was increased by Rs 2.35 on September 1, 2013.
During first fortnight of September, average international prices of petrol have gone up from $114.44 a barrel to $117.40. The average exchange rate has also deteriorated further from Rs 63.88/$ to Rs 66.02, said an Indian Oil press release.
"Should the recent trend of stabilization and appreciation of INR-USD exchange rate continue and international Petrol prices also not move adversely, the beneficial effect of the same will be passed on to the consumers in the next fortnight," it said.
At the current level, IOC is suffering under-recovery on sale of HSD (Retail) of Rs. 14.50/litre, SKO (PDS) of Rs.36.83/litre & domestic LPG of Rs. 470.50/cyl. For the year 2013-14, the Corporation is expected to incur under-recovery of Rs 82,000 crore on sale of three sensitive products (Industry: Rs 1,56,000 crore).
Releasing Economic Outlook for 2013-14, Prime Minister's Economic Advisory Council chairman C Rangarajan said due to the rupee depreciation and global oil prices, oil marketing companies need to be compensated. "Now the answer lies, not in making the oil marketing companies suffer more, the answer lies in making suitable adjustment in domestic prices," he said.
