The inevitable has happened – The Oil companies have decided to increase the petrol prices by Rs. 7.50 per litre from midnight today (23rd May 2012). Given the steep depreciation that rupee is witnessing against the dollar, this was very well on the cards.
The Petroleum Minister had mentioned yesterday that there was an urgent need to increase petrol prices and If rupee depreciates by one against the US dollar, oil companies stand to lose Rs 8,000 crore (annually)"
The oil companies said they will raise petrol price by Rs 6.28 per litre excluding local sales tax or VAT. The hike translates into Rs 7.50 per litre in Delhi
Here are the revised prices for major cities:
- Delhi – Revised to Rs. 73.14 per litre from existing Rs. 65.64.
- Kolkata – Revised to Rs. 77.53 per litre from existing Rs. 70.03.
- Mumbai – Revised to Rs. 78.16 per litre from existing Rs. 70.66.
- Chennai - Revised to Rs. 77.05 per litre from existing Rs. 69.55.
- Pune – Revised to Rs. 78.41 per litre from existing Rs. 70.91.
There was no word on increase of pricing in Diesel. Government had increased petrol prices in November last year.
What really needs to be seen is how this will affect inflation – Only recently it was showing signs of slowing down, but with such a steep hike in petrol, looks like inflation is surely going to shoot up back again!