business

Updated: Feb 15, 2015 20:07 IST

Thanks to a steep increase in international oil and petro product prices, the oil companies on Sunday hiked petrol prices by Rs 0.82 per litre and diesel by Rs 0.61 per litre (in Delhi.)

This increase in auto fuel prices comes after 10 cumulative reductions in petrol by Rs 17.11 a litre since August and Rs 12.96 a litre in petrol by way of six cuts since October.

HT had first reported on February 8th that consumers should brace up for a hike in petrol and diesel prices anytime soon.

“There has been a steep increase in international prices of both petrol and diesel and the rupee-dollar exchange rate has also depreciated slightly since the last price revision.

The combined impact of both these factors warrants increase in retail selling prices of both petrol and diesel,” said Indian Oil Corporation (IOC).

While global crude oil prices have crossed the $60 per barrel mark, the Indian basket of crude oil is also ruling at above the $55 per barrel level after crashing to below $45 a barrel last month.

Petrol in Delhi will now cost Rs 57.31 a litre, up from Rs 56.49 a litre. Similarly, diesel will now cost Rs 46.62 a litre from Rs 46.01 a litre.

Citing a major shake-up in the oil markets, the International Energy Agency (IEA) has also predicted a recovery in global oil prices. Stating this in its five-year forecast, the IEA said global oil prices will rise to $73 per barrel by 2020.