Petrol prices may go up by 65 paise from Friday


Wednesday, December 14, 2011: Petrol prices may be hiked by Rs 0.65 per litre this week if state-owned oil firms manage to get political approval for the move.
While a fall in the rupee to an all-time low of Rs 53.75 per US dollar has resulted in an increase in the cost of oil imports, international rates of gasoline — against which domestic petrol prices are benchmarked — have also increased, a top source at a state-run oil firm has said.
“The under-recovery on petrol is Rs 0.55-0.56 per litre. After adding local sales tax, the desired increase in Delhi comes to Rs 0.65-0.66 a litre,” he said, adding that the oil companies will review prices tomorrow and any change will be effective from December 16.
State-owned oil firms have cut petrol prices on two occasions in the past one month after international oil rates eased.
The companies reduced petrol prices by Rs2.22 per litre, or 3.2 per cent, from November 16 and followed this with a Rs 0.78 per litre cut from December 1.

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