OREANDA-NEWS. July 01, 2013. Indian Oil Corporation Ltd. has decided to increase the retail selling prices of Petrol w.e.f midnight of 28th / 29th June'13 by Rs 1.82/litre (excluding VAT) at Delhi.

Prices of Petrol were last revised on 16th Jun'13 mainly on account of depreciation of the Rupee. Since last price change, the downwards slide of Rupee has continued and USD-INR exchange rate has deteriorated from Rs. 57.08/USD to Rs. 58.94/USD during the fortnight. Further, international MS prices have also increased from USD 113.84/bbl to USD 115.29/bbl since last price change. The combined impact of both these factors, predominantly of Rupee depreciation, has warranted the increase in MS prices by Rs. 1.82/litre (excl. VAT).

The above factors have resulted in further increase in under-recovery on sensitive products also. Currently, OMCs are suffering under-recovery on sale of HSD (Retail) of Rs. 8.60/litre, SKO (PDS) of Rs.30.53/litre & LPG (Dom) of Rs.368.50/cyl.  Estimated under-recovery of the Corporation on sale of these three sensitive products is expected to be around Rs. 63,000 for the fiscal 2013-14 (industry estimates at around Rs. 1,18,000 crore).

The movement in international oil markets and INR-USD exchange rate is being closely monitored and developing trends of the market will be reflected in future price changes.