OREANDA-NEWS. Indian Oil Corporation Ltd. has decided to increase the retail selling prices of Petrol w.e.f midnight of 15th / 16th June'13 by Rs 2.00/litre (excluding VAT) at Delhi.

Prices of Petrol were last revised upwards on 1st Jun'13 by Rs. 0.75/litre (excluding state levies) mainly on account of devaluation of the Rupee. Since last price change, the slide in Rupee has continued and the USD-INR Exchange rate has deteriorated from Rs. 55.32/USD to Rs. 57.08/USD. Further, international MS prices have also hardened during this period. The combined impact of both these factors, mainly depreciation of the Rupee, has warranted the increase in MS prices by Rs. 2.00/litre (excl. VAT).

The above factors have also resulted in increase in under-recovery on sensitive products. Currently, OMCs are suffering under-recovery on sale of HSD (Retail) of Rs. 6.31/litre, SKO (PDS) of Rs.27.75/litre & LPG (Dom) of Rs.335.00/cyl. The estimated under-recovery of the Corporation on sale of these three sensitive products is estimated to be around Rs. 60,000 for the fiscal 2013-14 (industry estimates at around Rs. 1,12,500 crore).

The movement in international oil markets and INR-USD exchange rate has been put on a close watch and developing trends will be reflected in future price changes.