A man poses with a gasoline pump at a Budapest petrol station January 19, 2011. Gas Prices To Average Below $3 Next Year, Government Predicts
Gas Prices To Average Below $3 Next Year, Government PredictsReuters

The Indian Oil Corporation Ltd (IOC) has increased petrol prices by ₹1.55 per litre, excluding state taxes, with effect from Monday (15 July).

IOC increased the petrol prices due to the impact of the falling rupee and increase in international oil prices.

"Since last price change, the downward spiral of Rupee against the USD dollar has continued to reach a low of Rs 60.03/USD as against Rs. 58.94/USD during the previous fortnight. Further, international MS prices have also shown an uptrend and increased from $115.29/bbl to $117.19/bbl. The combined impact of deteriorating exchange rate and increasing international oil prices has resulted in the need to increase Petrol prices by Rs 1.55/litre (excl. VAT)," IOC said in a press release.

"The movement of prices in international oil markets and INR-USD exchange rate is being closely monitored and developing trends of the market will be reflected in future price changes," it said. 

The increase in petrol prices has happened for the fourth time in six weeks. Petrol price was last hiked by ₹1.82 per litre (excluding Value Added Tax (VAT)) on 28 June. Accordingly, one litre of petrol will now cost ₹70.44 a litre against ₹68.58 with an increase of ₹1.86 per litre (including state taxes) in Delhi. This revision of prices was due on 16 July, but has come a day earlier.

However, there will be no changes in diesel price as of now and it will be revised at the end of July. Earlier, the government had authorised state-owned oil firms to increase diesel prices by ₹50 paise/per litre every month until the entire losses on fuel are wiped out. With respect to that, diesel prices were hiked in the first week of July. The next hike is expected in the last week of July or first week of August.