In order to align the domestic rates of the automobile fuels with global prices, the PSU Oil Marketing Companies (OMCs) have once again increased prices of petrol by Rs 2.58 per litre and diesel rates by Rs 2.26 per litre, effective from the midnight of May 31 and June 1. It was the second hike in last one month, the prices were last hiked on May 17, when petrol price was increased by 83 paise and diesel was made costlier by Rs 1.26 per litre in line with rising crude oil and product prices in the global market.
While it was the second consecutive hike in petrol prices, it marked the seventh straight fortnightly increase in diesel rates. Post the changes, petrol will be priced at Rs 65.60 per litre, while a litre of diesel will cost Rs 53.93 per litre in Delhi, including state taxes.
According to IOC the country's largest fuel retailer, the hike in prices is due to the movement in the international oil market and INR-USD exchange rate. It further said that the current level of international product prices of Petrol and Diesel and the Rupee-Dollar exchange rate warrant increase in price of Petrol and Diesel, the impact of which is being passed on to the consumers with this price revision.
The three PSU OMCs, Indian Oil Corporation (IOC), Bharat Petroleum Corporation (BPCL) and Hindustan Petroleum Corporation (HPCL) revise rates of the fuel on 1st and 16th of every month based on the average oil price and the foreign exchange rate in the preceding fortnight.