Veerappa Moily rules out roll back in petrol, diesel hike
1.50 per litre in petrol price as international benchmark oil prices climbed 7.5 per cent.
The diesel rate was raised in line with last month's government decision to allow oil firms to raise prices in small doses every month till over Rs 10 a litre loss on sale of India's most consumed fuel is totally eliminated.
Even after last week's and a similar hike effected on January 18, oil firms will continue to lose Rs 10.27 a litre on diesel as cost of raw material (crude oil) has risen by 4 per cent to USD 113.24 per barrel.
"Whenever there is over-recovery (profit on sale of petrol), we have made it clear that it has to be passed on to consumers. So last month you saw a 25 paisa reduction in rates," Moily said.
Prior to February 16 hike, 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
