Thaindian News

New Delhi, May 23 (IANS) Petrol prices have been hiked by Rs.6.28 per litre, exclusive of taxes, effective midnight, it was announced here Wednesday.

Petrol will cost Rs.73.14 per litre in Delhi against the existing price of Rs.65.64 per litre.

In Mumbai, petrol will now cost Rs.78.16 per litre, while in Kolkata and Chennai, it will cost Rs.77.53 per litre.

“Given the losses being incurred, the Company is compelled to increase the price of petrol by Rs.6.28 per litre (excluding VAT/Sales Tax) with effect from midnight,” the country’s largest oil firm Indian Oil Company said in a statement.

“This excludes losses already suffered till date during current financial year 2012-13, which would require an additional increase of around Rs 1.50 per litre in selling price of motor spirit (MS) for balance part of the year,” Indian Oil said.

This is the sharpest ever hike in petrol prices. The actual increase in prices will vary from state to state depending on the prevailing sales and other taxes.

Given that the rate of Sales Tax/VAT varies from 15 percent to 33 percent in the states, additional sales tax of Rs.0.94 to Rs.2.07 per litre will be added to the increased price.

“This shall be over and above the existing Sales Tax of Rs.10.30 per litre to Rs.18.74 per litre already being levied in the existing motor spirit (petrol) prices,” Indian Oil said.

A sharp drop in the value of rupee has added to the woes of the oil marketing companies, who have been under financial strain due to persistently high prices of crude oil in global markets.

The Indian rupee breached another psychological level of 56 against a dollar Wednesday and plunged to low of 56.18 in the intra-day, hitting a record low for the sixth session in a row.

The rupee has weakened by over three percent in the just three sessions this week despite the assurances and interventions in the currency markets by the Reserve Bank of India.

Finance Minister Pranab Mukherjee has blamed global uncertainties and the rising oil imports bill for the battering of the Indian currency. “The quantum of India’s oil imports is substantial at around $160 billion to $170 billion annually,” he said.