OREANDA-NEWS. 1. Indian Oil Corporation Ltd. has decided to effect the following price changes w.e.f midnight of 30th June /1st July'14:

Increase in retail selling price of Petrol by Rs. 1.69/litre (excluding state levies).

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

2. Due to geo-political unrest in the Middle East, there has been significant increase in International Oil prices during the past two weeks. The international prices of MS have increased by more than USD 4/bbl, and the INR-USD exchange rate has also deteriorated. The combined impact of both these factors has warranted an increase in Petrol prices by Rs. 1.69/ litre (excluding state levies).

3. In addition to above, 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. 3.40/litre.

4. Further, the Corporation continues to suffer under-recoveries on sale of SKO (PDS) of Rs.33.07/litre & LPG (Domestic) of Rs. 449.00/cyl.

5. For the year 2014-15, the Corporation is expected to incur under-recovery of around Rs.56,550 crore on sale of three sensitive products (Industry around Rs.1,07,850 crore).

6. The movement of prices in international oil market and INR-USD exchange rate shall continue to be closely monitored and developing trends of the market will be reflected in future price changes