OREANDA-NEWS. Indian Oil Corporation Ltd. has decided to effect the following price changes w.e.f midnight of 31st July'13/ 1st Aug'13:

Increase in retail selling prices of Petrol by Rs.0.70/litre (excluding state levies)

Increase in retail selling price of Diesel (retail) by Rs.0.50/litre (excluding state levies)

Since the last price change, the international price of petrol has gone up from USD 117.19/ bbl to USD 120.05/bbl. The INR-USD exchange rate however, has marginally appreciated from Rs. 60.03/ USD to Rs. 59.49/USD . The combined impact of these factors has warranted a price increase of petrol by Rs. 0.70/litre. (excluding state levies)

Further, in pursuant to GOI order dated 17th Jan'13, OMCs have been authorised to increase the retail selling price of Diesel within a small range every month until further orders. Accordingly, since then, retail Diesel prices are being revised every month. In continuation of the above, Indian Oil Corporation Ltd. has decided to effect the aforesaid increase in retail Diesel prices. Even after the current increase, under-recovery on retail Diesel shall stand at Rs. 9.29/ litre.

In addition to HSD (Retail), OMCs continue to suffer under-recovery on sale of SKO (PDS) of Rs.33.54/litre & LPG (Dom) of Rs.412.00/cyl. For the year 2013-14, the Corporation is expected to incur under-recovery of Rs 68,000 crore on sale of three sensitive products (Industry: Rs 1,28,500 crore).

The movement of prices 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.