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Despite elections being less than five months away, oil marketing companies have raised petrol prices by 75 paisa a litre, while diesel prices saw a monthly rise of 50 paise, with effect from Saturday.
Since the last revision of petrol prices, international prices saw a rise from about $115 a barrel to $116.6 a barrel, and the rupee-dollar exchange rate depreciated from Rs 61.88 a dollar to Rs 62 a dollar.
“There is a continued volatility in the international oil prices because of geopolitical and economic developments around the globe,” IndianOil said in a statement. Petrol prices in Delhi would be up from Rs 71.50 a litre to Rs 72.25 , while diesel would go up to Rs 54.80 from Rs 53.30 a litre.
Prices were last increased on December 20, owing to an increase in dealer commission.
Since, January 17 last year, OMCs were allowed to go for a partial decontrol of diesel prices with a monthly dose of 50 paise rise a month. Even after the current increase, under recovery on retail diesel shall stand at Rs 9.24 a litre.
OMCs are also suffering under-recoveries on the sale of kerosene of Rs .37.33 a litre and domestic liquefied petroleum gas of Rs 762.50 a cylinder. For the year 2013-14, IOC is expected to incur under recovery of Rs 74,700 crore on the sale of three sensitive products. Meanwhile, the under recovery figures for the industry on sensitive petroleum products is expected to be Rs 1,44,800 crore.
