IOC Hikes Petrol Prices by 72 Paise per Litre

The Indian Oil Corporation (IOC) announced a price hike for petrol, increasing the price by 72 paise per litre, effective midnight. The new price of petrol in Delhi will be Rs 52.55 a litre, with prices varying in other cities depending on local taxes and levies. This move comes after Bharat Petroleum Corporation Ltd (BPCL) had already announced a 70 paise per litre increase in petrol prices, and Hindustan Petroleum Corporation (HPCL) is expected to follow suit soon. The three oil companies, IOC, BPCL, and HPCL, have adopted a new pricing mechanism, where they no longer revise prices in tandem to avoid being seen as a cartel.

Key Takeaways:

• IOC increased petrol prices by 72 paise per litre, effective midnight.
• The new price of petrol in Delhi will be Rs 52.55 a litre.
• Prices will vary in other cities depending on local taxes and levies.
• This is the second price hike since June 2010, when the government freed petrol pricing from administrative control.
• IOC, BPCL, and HPCL no longer revise prices in tandem to avoid being seen as a cartel.
• The three companies are losing about Rs 1 per litre on petrol due to international oil prices exceeding $80 per barrel.
• The government allowed state companies to fix rates in line with production costs.

Statistics:

• The price of petrol in Delhi will be Rs 52.55 a litre after the hike.
• The three oil companies are expected to lose about Rs 1 per litre on petrol.
• International oil prices have exceeded $80 per barrel this month.
• The government freed petrol pricing from administrative control in June 2010.
• This is the second price hike since June 2010.
• BPCL announced a 70 paise per litre increase in petrol prices yesterday.
• HPCL is expected to follow suit in a day or two.

Sources:

• PTI
• ANZ
• SKR
• KM
• PTI ANZ SKR KM 10161904 (date of report not specified, but reported on October 16, 2010)