The Indian Oil Corp. (IOC) hiked the petrol prices by Rs 2.58 a litre and diesel by Rs 2.26 per litre, yesterday at midnight. With this change, petrol will cost Rs 65.60 per litre in Delhi after the increase while diesel will cost Rs 53.93 a litre.
Zone wise price movement shows that petrol prices will be comparatively cheaper in Chennai with Rs 65.04 and costlier in Mumbai with Rs.70.18 per litre.The midnight announcement was the second hike this month. The prices were last hiked on May 17.According to IOC, the hike in prices is due to the movement in the international oil market and INR-USD exchange rate."The current level of international product prices of petrol and diesel and INR-USD 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," said Indian Oil Corp (IOC).
Since deregulation in 2014, oil marketing companies now have the liberty to to hike or cut prices according to global price movement.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.
While movement of prices in the international oil market will continue to be observed closely, developing trends will reflect on the future price movement.