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

Increase in retail selling prices of Petrol by Rs.2.35/litre (excluding state levies)

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

Prices of Petrol were last revised upwards by Rs. 0.70/litre (excluding VAT) on 1st Aug'13. Consequent to this price increase, the INR-USD Exchange rate has deteriorated sharply, from Rs.59.49/USD to Rs.63.88/USD during current pricing cycle, necessitating this price increase.

Currently, the INR-USD exchange rate continues to be extremely volatile. Also geopolitical situation in the Middle-East is leading to pressure on international oil prices as well. In view of these conditions, movement of prices in international oil markets and INR-USD exchange rate is being closely monitored and subsequent price changes will reflect developing trends of the market.

Further, in pursuant to GOI order dated 17th Jan'13, OMCs have been authorized 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 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. 12.12/litre.

The deteriorating INR-USD exchange rate is also adversely impacting under-recovery of other sensitive products which, at current levels, are Rs.36.83/litre for SKO (PDS) & Rs. 470/cyl for LPG (Dom).

For the year 2013-14, the Corporation is expected to incur under-recovery of Rs 76,000 crore on sale of three sensitive products (Industry: Rs 1,44,000 crore).