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

Expanding Eureka!

Abright yellow van with figures of children playing with a whirligig, a Newton’s cradle, a magnetic compass rolls into the Government Higher Primary School in Kittaganahalli, on the outskirts of Bengaluru. Students in the playground leave what they are doing and mill about it in excitement. For they

The spark in the classroom

Not many children dream of starting an idyllic school of their own when they grow up. But Ramji Raghavan, founder of the Agastya International Foundation – which fosters the creative learning of science in stude

Trafficking survivors’ votes don’t count

While the entire nation is agog with political grapevine, political parties are weighing on all options to lure voters by touching upon issues that impact their lives. Several parties, including the BJP and the Congress have released their manifestos while many are about to join the bandwagon. The

“I have a bigger reason and motivation to join politics”

Urmila Matondkar joined the Congress party and within just two months into politics, the actor is already surrounded by controversies – from being accused of making anti-Hindu comments to inappropriate poll campaigning. Fielded against BJP’s Gopal Shetty in the Mumbai North constituency, Ma

Campaign trail with BJP’s Manoj Kotak

Dressed in white shirt and pants, three time Bhartiya Janta Party (BJP) corporator Manoj Kotak is now contesting from Mumbai north-east constituency. Kotak, representing BJP in the BMC, is ready to rally around Ward 125 in Ghatkopar east area. It’s about 7:30 pm on a hot April e

Modi is now the topic of a PhD thesis

Sunil Bhatt, a Gujarat-based professional, has completed what is possibly the first PhD thesis on prime minister Narendra Modi. The thesis, titled ‘Leadership, Governance and Development: A case study of Shri Narendra Modi’, has been accepted at the Veer Narmad South Gujarat Universit



Current Issue

Current Issue

Video

CM Nitish’s convoy attacked in Buxar

Opinion

Facebook    Twitter    Google Plus    Linkedin    Subscribe Newsletter

Twitter