Petrol prices hiked by Rs 1.50, diesel by 45 paise
Petrol price was last revised on January 18 when the rate was cut by 25 paise a litre. After including VAT, this translated into a reduction of 30 paise to Rs 67.26 a litre in Delhi.
The reduction in rates on that day coincided with the government decision to give oil firms freedom to raise diesel prices in small monthly doses to eliminate all of the losses on the fuel. Oil firms hiked diesel price on that day by 45 paise, which after including VAT led to a 50-paise increase to Rs 47.65 a litre in Delhi.
The price of petrol was last hiked on October 27 when rates went up by 29 paise after government raised commission paid to petrol pump dealers.
IOC said crude oil price has increased from USD 109.08 per barrel at the time of last revision on January 18 to USD 113.24, while international gasoline or petrol prices have risen from USD 119.59 a barrel to USD 128.57.
State-owned companies have been "compelled to pass on the increase in petrol prices to consumers as the they have already suffered losses on sale of petrol so far and trends in international oil market as well as rupee-US dollar exchange rate indicate continued strength."
In fact, currently petrol prices are hovering around USD 132.80 per barrel. "The trends of international oil prices and INR-USD