Iraq crisis leads to hike in petrol, diesel prices
Petrol prices hiked by Rs 1.69 and Diesel by 50 paise a litre
New Delhi: The increase in international crude oil prices due to civil war in Iraq has started to pinch Indian consumers. State run oil marketing companies on Monday hiked petrol prices by Rs 1.69 a litre (excluding state taxes) due to increase in its international prices and depreciation in Indian Rupee.
Oil companies also hiked diesel prices by 50 paise a litre, excluding local taxes. The under-recovery on diesel has increased from Rs 1.62 a litre a fortnight ago to Rs 3.40 a litre even after Monday’s hike.
Last year, government had allowed state-run oil companies to hike diesel price every month by 50 paise until under-recovery on it is fully eliminated. Before Iraq crisis, the diesel prices would have needed to be hiked for three more months. Now, they will be needed to be hiked by 50 paise a litre for seven more months.