MUMBAI: The state-owned oil marketing companies (OMCs) have decided to increase petrol prices by over 70 paise a litre with effect from midnight, after two successive rounds of rate cuts in the last month. The increase in petrol prices was triggered by the increase in cost of Indian basket of crude oil prices in the last one month, which is hovering over $104 per barrel, according to Petroleum and Planning Analysis Cell (PPAC) data.

With effect from mid-night petrol prices would cost Rs 68.48 in Delhi, Rs 74.23 in Mumbai, Rs 73.16 in Chennai, Rs 73.61 in Kolkata, Rs 75.80 in Hyderabad and Rs 77.30 in Bangalore. Delhi witnessed a hike of 70 paisa per litre while Bangalore witnessed a hike of 91 paisa per litre over the prevailing prices.

“It has been decided by Indian Oil Corporation to increase petrol prices by Rs 0.70/litre with effect from midnight of 23-24 July, 2012,” said a statement by India’s largest fuel retailer Indian Oil Corporation adding that the said revision has been necessitated due to increasing international oil prices and movement in rupee-dollar exchange rate.

The average price of Indian basket of crude for the relevant pricing period considered is $101.28 per barrel while international petrol price is $111.59 per barrel and the rupee-dollar exchange rate is pegged Rs 55.36 against the dollar, forcing the state-owned firms to incur a loss of Rs 1.41 per litre on petrol sales in the domestic market.

“As the price movement is quite volatile, it has been decided that an increase of Rs 0.70 a litre (excluding state levies) may be effected at this juncture and the situation watched for some time depending upon which a further view will be taken at an appropriate time,” said the IOC statement hinting at another price hike if the crude oil prices continue to rise.

The marginal hike in rate follows reductions last month by Rs 2.02 per litre on June 3 and Rs 2.46 a litre on June 29 after the Rs 7.54 per litre increase in rates, the biggest in the history, effected in May this year.

Oil firms have already lost over Rs 2300 crore on sale of petrol in April and May this year and IOC alone lost to tune of Rs 1050 crore.

The under recoveries (loss on sale of sensitive petroleum products below market prices) of the oil firms are projected to be Rs 1,60,000 crore as these firms are losing Rs 10 per litre on sale of diesel, Rs 27 per litre on sale of kerosene and Rs 319 per cylinder on sale of cooking gas.

Following are the revised petrol prices in four metros

Delhi

Current Price: 67.78

Revised Price: 68.48

Increase: 0.70

Kolkata

Current Price: 72.74

Revised Price: 73.61

Increase: 0.87

Mumbai

Current Price: 73.35

Revised Price: 74.23

Increase: 0.88

Chennai

Current Price: 72.27

Revised Price: 73.16

Increase: 0.89

(All rates in Rs/litre)

