Petrol and diesel prices in the country, got hiked by Rs 1.06 and Rs 2.94 respectively.
State-owned fuel retailers IOC, BPCL and HPCL revise rates on every fortnight (1st and 16th of every month), based on the average oil price and the foreign exchange rate in the preceding fortnight.
“The movement of prices in the international oil market and the rupee-USD exchange rate shall continue to be monitored closely and developing trends of the market will be reflected in future price changes,” IOC has once said.
As the main engine of global demand growth for the past several years starts to sputter amid signs of a gasoline glut, the rebound in the oil prices internationally from 12-year lows is in danger of coming to a crashing halt.
Crude oil, from January, has rallied more 2/3rds, nadir on robust demand from refineries across the world, stoking cautious optimism among producers and exporters that the epic rout that slashed global prices by 75 % between mid-2014 and early 2016 is finally over.
But, especially in Asia, the rampant production of the oil products, is threatening to derail that recovery. Several major gasoline importing countries have started exporting, keeping in mind the chances of overflowing of the excessive supply of fuels in the storage facilities and erode refinery profits.
However, the Indian consumers are yet to get proper benefits from the sharp price reduction to a decade low, as the government on 5 occasions since November, has raised excise duty on the petrol and diesel.
The total 5 hikes add add up to Rs 4.02 per litre on petrol and Rs 6.97 on diesel, thus the government makes an additional revenue of Rs. 17000 crore.
According to global price movement, diesel prices were deregulated in 2014, giving freedom to the oil marketing companies to hike or reduce the prices.
By Phani Ch