Why petrol price has gone up putting burden on household budget

Diesel prices cut but food inflation may rise due to fears of weak monsoon

GN Bureau | June 16, 2015


#petrol   #diesel   #inflation   #exchange rate   #retail price  

While food inflation continues to rise and fears of weak monsoon may further push up the prices of pulses and vegetables, the fuel retailers have added expenditure to the households budget by increasing the prices of petrol by Rs 0.64 a litre. However, those owning diesel vehicle can be at ease as the price of has been cut by Rs 1.35 a litre.

The rise and fall is to align the prices of the petro products with international prices and adjusting for foreign exchange rates. The exchange rate is important in determining the price as India imports about 80% of the oil its total consumption. State-owned fuel retailers IOC, BPCL and HPCL revise petrol and diesel prices on 1 and 16 of every month based on average imported cost and rupee-dollar exchange rate in the previous fortnight.

Prices of petrol and diesel were last raised by Rs 3.13 a litre and Rs 2.71 a litre, respectively, a month ago. "Since last price change, there has been an increase in international prices of petrol while international prices of diesel have shown a downward trend. Rupee-dollar exchange rate has depreciated during this period. Combined impact of these factors warrant an upward revision in prices of petrol and a downward revision in prices of diesel, the impact of which is being passed on to the consumers," Indian Oil Corp, the nation's largest fuel retailer, said in a statement on Monday.

"The movement of prices in international oil market and rupee-dollar exchange rate shall continue to be monitored closely and developing trends of the market will be reflected in future price changes," Indian Oil said.

Meanwhile, shares of oil majors Hindustan Petroleum Corp (HPCL), Bharat Petroleum Corp (BPCL) and IOC rise around 1 percent in early trade on Tuesday.

Comments

 

Other News

Coal production rises by 18% to 448 MT

The total coal production in the country stands at 448 million tonnes (MT) for the month of October 2022 which is 18% higher than the production of the corresponding period of last year. The growth of coal production from Coal India Ltd (CIL) is also more than 17%. The ministry of coal said

How to execute large-scale social impact projects

The number of social innovators and entrepreneurs has considerably increased recently in India. The idea of social entrepreneurship, which aspires to provide novel solutions for the world`s most critical social issues, is now receiving more attention. Challenges like overworked healthcare,

Plastic is no longer a waste management issue

Plastic is arguably the most ubiquitous material of our times. In this Age of Plastic, it might seem its use can’t go up any further – and yet it keeps going. Between 2000 and 2015, global production of plastic increased by a whopping 79%. The total mass of plastics on our planet is now twice t

Celebrating the Ganit of Protein!

“Why is the child growing?” is the question that bothers a lot many in the administration. The answer, to be honest, is to be discovered via science, and less via what we call ‘effective administration’. Eventually, it will be the latter that will enforce the former on the field, bu

Trying to achieve work-life balance? Here’s some advice

The untapped potential of every individual is the biggest tragedy of the human race. The primary reason for this is our lack of awareness of the processes, tools and t

Getting to know Indian history’s heroes better

Bravehearts of Bharat: Vignettes from Indian History By Vikram Sampath Penguin, 334 pages, Rs 799 A student has an assignment

Visionary Talk: Amitabh Gupta, Pune Police Commissioner with Kailashnath Adhikari, MD, Governance Now


Archives

Current Issue

Opinion

Facebook    Twitter    Google Plus    Linkedin    Subscribe Newsletter

Twitter