Sunday, 25 December 2011

Petrol Price may be Increased by Rs 1 in January 2012

Petrol price may be hiked by about a rupee per litre from next month as the Indian currency has weakened against the US dollar making imports costlier.The rate change may, however, need a political clearance as assembly elections in five crucial states, including Uttar Pradesh and Punjab, have been announced."

While international price of gasoline (against which domestic petrol prices are benchmarked) are more or less at the same level (as at the time of last revision), the rupee has depreciated to about Rs 52.70 to a US dollar," a top official said.The domestic rates, which were last revised on November 30, are pegged at Rs 51.50 to a US dollar exchange rate. The average exchange rate in first fortnight of December was Rs 51.98 to a US dollar, which has further deteriorated.

"There is an under-recovery of about 85 paise (Rs 0.85) per litre currently. After adding local sales tax, the desired increase in retail prices would be Rs 1.02 per litre," the official said.


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