Oil Marketing Companies Hike Diesel Price by 50 Paise per Litre

Strategic Insights -

Oil marketing companies (OMCs), including Indian Oil Corp (IOC), Bharat Petroleum Corp (BPCL), and Hindustan Petroleum Corp (HPCL), have announced a hike in diesel prices, effective October 1, 2015. The price of diesel has been increased by 50 paise per litre, while the price of petrol remains unchanged. This is the first increase in diesel price since May 16, and the price of diesel in the national capital will now be Rs 44.95 per litre.

Key Takeaways:

  • The price of diesel has been increased by 50 paise per litre, making it Rs 44.95 per litre in the national capital.
  • The previous revision on September 1 saw a reduction in fuel prices, with diesel prices being cut by 50 paise per litre.
  • PSU oil marketing companies Indian Oil Corporation, Bharat Petroleum Corp, and Hindustan Petroleum Corp revise petrol and diesel prices on the 1st and 16th of every month based on average imported cost and rupee-dollar exchange rates in the previous fortnight.
  • The increase in diesel price is the first since May 16, indicating a change in petroleum pricing mechanism.
  • The retailers had previously skipped the revision of fuel prices on September 15 due to a 'marginal' difference between production cost and retail rate.

Statistics:

  • Diesel price in the national capital: Rs 44.95 per litre (effective October 1, 2015)
  • Previous diesel price: Rs 44.45 per litre (effective September 1, 2015)
  • Increase in diesel price: 50 paise per litre
  • Previous revision on September 1: Diesel price cut by 50 paise per litre, Petrol price cut by Rs 2 per litre

Sources:

  • [Source: Reuters, 2015 (exact date not available)]
  • [Source: Business Standard, 2015 (exact date not available)]