IOC raises petrol prices by Rs0.32 a litre

IOC raises petrol prices by Rs0.32 a litre

New Delhi: State-owned Indian Oil Corp (IOC), the nation’s largest fuel retailer, today hiked petrol prices by Rs0.32 a litre with effect from midnight tonight in line with rise in cost of crude.

IOC follows sister PSU concern, Hindustan Petroleum Corp Ltd (HPCL), which has raised petrol price by Rs0.31 a litre already effective today.

This is the fourth increase in petrol prices since 25 June when the government gave oil firms freedom to price the fuel in step with cost.

“We are increasing petrol price because of sharp rise in price of crude oil," IOC chairman B M Bansal told reporters in New Delhi.

Petrol in Delhi currently costs 2.59 a litre and will cost 52.91 a litre from midnight tonight.

In the previous three increases on 8 September , 21 September and 17 October , IOC had raised petrol price by a total of Rs1.16 per litre.

“Today’s hike is less than the Rs1.1 per litre that we currently lose on selling petrol," another company official said. “We are moderating the increase."

International crude oil, the raw material for petrol, have climbed to $87 per barrel from $81-82 a barrel at the time of last revision in October.

Petrol in Mumbai will cost Rs57.35 per litre as against Rs57.01 currently, while in Kolkata rates have been increased by Rs0.34 to Rs56.81 a litre. In Chennai, the rates have been increased to Rs57.44 per litre from Rs57.09.

Bharat Petroleum Corp Ltd (BPCL), the third state-owned firm, will also increase petrol price by an almost equal quantum from midnight tonight.

The three oil companies no longer revise petrol prices in tandem to avoid being accused of acting as a cartel and their prices vary marginally.

Diesel, however, continues to be sold at subsidised rates. Its price at Rs37.75 per litre is Rs2.95 lower than imported cost and IOC was losing Rs26 crore per day on diesel sales, the official said.