Oil companies on Saturday hiked petrol price by 89 paise a litre and that of diesel by 86 paise a litre, reported PTI. After including local value-added tax, petrol will now cost Rs 67.62 a litre in Delhi and diesel 56.41 from Satuday midnight. The rates, however, will vary depending on state taxes.
The Indian Oil Corporation said that the current level of international fuel prices and the rupee-US dollar exchange rate are responsible for the hike in the selling price of petrol and diesel. This is the sixth time that fuel prices have shot up since September 1. The last hike was on October 15 when petrol price went up by Rs 1.34 per litre and diesel was hiked by Rs 2.37 a litre. It was triggered by a surge in global rates. Fuel retailers Indian Oil Corp, Bharat Petroleum Corp and Hindustan Petroleum Corp keep an eye on the global scene and revise rates accordingly every fortnight.
In September, the Organisation of the Petroleum Exporting Countries had agreed to cut production. The cut is likely to reduce output by around 7,00,000 barrels per day. However, it is not an evenly distributed cut because Iran will be allowed to increase production. Earlier attempts to cut production failed because of disagreements between Iran and Saudi Arabia.