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Published: Mon, January 02, 2017
Economy | By Melissa Porter

Petrol price hiked by Rs 1.29 per litre, diesel by Rs 0.97

Petrol price hiked by Rs 1.29 per litre, diesel by Rs 0.97

Finance Minister Senator Ishaq Dar after getting consent from the premier announced on Saturday the government's policy regarding petroleum products prices for the month of January 2017.

The cost of driving home for Christmas went up this year - and now there's a further spike in prices for the New Year.

He said the decision of not to raise the petroleum prices would cost some Rs 4 billion.

"In order to maintain stability since April 2016, prices have been maintained despite fluctuation in worldwide prices and the government has been absorbing the negative financial impact due to government's decisions for not passing on increases to the end consumers". The actual hike after considering Value-Added Tax would be Rs1.66 a litre in Delhi for petrol and Rs1.14 for diesel.

The OGRA had also suggested increasing price of kerosene oil by 16.02 per cent or Rs6.93 and light diesel oil (LDO) price by 8.02 per cent or Rs3.48 per litre.

"Increase in Selling Price of Petrol by Rs. 1.29/litre (excluding State levies)", read a statement issued by the state-run Indian Oil Corporation (IOC).

"That hurts, look at the prices", said Tom Kloza, Oil Price Information Service global petroleum expert.

The ministry on Thursday received a summary from Ogra that recommended an upward revision in oil prices.

Sources earlier told this scribe that PML-N government would not approve hike as OGRA worked out in its working paper because of political pressure.

It said the movement of prices in the global oil market and foreign exchange rate shall continue to be monitored closely and developing trends of the market will be reflected in future price changes.

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