IOC hikes petrol price
New Delhi   16-Dec-2010

State-owned IndianOil (IOC) has increased petrol price in the range of Rs 2.96 to Rs 3.21 a litre with effect from Thursday and Hindustan Petroleum Corporation is expected to follow suit.

IOC said that the price of non-branded petrol will go up by Rs 2.86 to Rs 55.87 a litre in Delhi, by Rs 3.11 to Rs 60.46 in Mumbai, by Rs 3.21 to Rs 60.65 in Chennai and by 3.09 to Rs 59.9 in Kolkata. State-run Bharat Petroleum Corporation also had on Tuesday raised prices by Rs 2.96 a litre.

Finance minister Pranab Mukherjee said the price increase was in accordance with the increase in prices of crude oil in the global market. “The price of crude oil in the international market has touched $90 a barrel. Petrol prices have been deregulated already. So the hike in price was in parity with international prices," Mukherjee said.

An increase in the diesel price also looks imminent as the petroleum ministry wants the government, upstream companies, and the consumers to share the increased cost of fuel. A group of ministers is likely to consider passing on a part of the increased crude oil cost to the consumer later this month. Although the government had deregulated diesel price in principle, this is not time to totally free up the retail price, the ministry had stated last week.