Petrol prices go up by Rs 2 plus taxes due to falling rupee

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New Delhi, June 15: Petrol prices will go up by Rs 2 a litre, excluding VAT, with effect from midnight tonight.

This will be the first substantial price-hike in three and half months' time. Petrol prices were last increased on June 1. Petrol prices have been cut four times on falling global oil prices. Petrol prices were cut by Rs 2.40 on March 16, Re 1 on April 1, Rs 1.20 on April 16 and Rs 3 per litre on May 1.

However, with the rupee hitting rock bottom, the oil marketing companies had no alternative but to rise prices as oil imports have become costlier.

The rupee ended a tough week on Friday at 0.8 per cent fall, its sixth consecutive week loss, having hit a record low of 58.99 on Tuesday.

The country's largest oil marketing firm Indian Oil Corporation (IOC) said the prices have been revised upward due to the depreciation in the value of rupee and rise in international crude oil prices.

"Since the last price change, the slide in rupee has continued. Further, international MS (motor spirit) prices have also hardened during this period. The combined impact of both these factors, has warranted the increase in MS prices," IOC said in a statement.

State owned oil firms have been mandated to raise diesel prices by up to 50 paisa per litre every month till losses are taken care.

             Current Price   Revised Price    Increase

Delhi        63.99             66.39               2.40

Kolkata    71.29             73.79               2.50

Mumbai   72.08             74.60               2.52

Chennai   66.85             69.39               2.54

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