New Delhi: Petrol prices up by `1.40 per litre, excluding taxes, from midnight yesterday due to the depreciating rupee and a sharp increase in crude oil prices in global markets, the government-run oil marketing firms said yesterday.
This is the second increase in petrol price in the past two weeks. It was hiked by `1.50 per litre on February 16.
The country’s largest oil marketing firm Indian Oil Corporation said the prices have been revised upward due to the depreciation in the value of rupee and rise in international crude oil prices.
“The combined impact of these two factors has compelled the company to revise the prices. The Corporation does not have any other option but to pass on the increase in motor spirit prices to consumers as the Corporation has already suffered losses on sale of motor spirit during the year,” Indian Oil Corporation said in a statement.
Rupee down at nearly two-month low
MUMBAI: The Indian rupee yesterday fell by a whopping 53 paise to close at nearly a two-month low of `54.89 due to heavy US dollar demand from oil importers and may breach 56-level in the short term. Forex dealers said euro falling to 1.3008 levels and the US dollar strengthening against major currencies overseas also put pressure on the local currency.
“The rupee fell sharply today as the market was disappointed with the Budget for not meeting its expectations to take concrete steps to curb the burgeoning current account deficit (CAD),” said Ashtosh Raina, chief dealer at HDFC Bank.Agencies