Petrol prices were hiked for the 10th time since June 2010, by a little over Rs.3.14 a litre from Friday (15-Sep-2011), as India's oil retailers sought to pass most of the burden of the falling value of the rupee and high crude prices on to consumers.
The increase in petrol price is the latest after a record 5 rupee hike in May 2011. Petrol prices vary from city to city depending on VAT and other local levies.
Oil companies in India have been free since June 2010 to set their own prices for petrol, which is considered a rich person's fuel. Raising the petrol price is politically easier than lifting state-controlled diesel prices, which New Delhi did in June after months of delay.
The recent depreciation of the rupee, which has fallen nearly 8 percent from its 2011 high, adds to the subsidy burden for oil marketing companies.
Petrol price were freed from the government control in June last year but the retail rates have not moved in line with cost as high inflation rate forced the oil companies to seek 'advice' from parent oil ministry before revising rates.
The increase in petrol price is the latest after a record 5 rupee hike in May 2011. Petrol prices vary from city to city depending on VAT and other local levies.
Oil companies in India have been free since June 2010 to set their own prices for petrol, which is considered a rich person's fuel. Raising the petrol price is politically easier than lifting state-controlled diesel prices, which New Delhi did in June after months of delay.
The recent depreciation of the rupee, which has fallen nearly 8 percent from its 2011 high, adds to the subsidy burden for oil marketing companies.
Petrol price were freed from the government control in June last year but the retail rates have not moved in line with cost as high inflation rate forced the oil companies to seek 'advice' from parent oil ministry before revising rates.
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