Petrol price hike 2 per litre

Petrol price hike 2  per litre 

Days after the oil minister distanced himself from the question of another hike in petrol prices, oil marketing companies have taken action. Indian Oil Corporationhas raised petrol prices by another Rs 1.80 per litre from midnight
The government had in June last year deregulated, or freed, petrol from all price controls, but the retail rates have not moved in line with the cost as high inflation forced the oil companies to seek “advice” from the parent Oil Ministry before revising rates.
Private oil retailers such as Essar and Reliance Industries are even contemplating increasing diesel prices by Rs 2 a litre to cover the impact of crude and currency exchange rates. The companies already sell diesel at premium of Rs 7 a litre compared to their PSU peers.
“There are some losses on petrol. To cover them, we may have to increase pricesa¦ Let’s say, we are toying with the idea. It may happen. We will see,” company’s director (finance) B Mukherjee told reporters in Delhi
The earlier Rs 3.14 hike in petrol prices was estimated to have added about 7 basis points to inflation (100 basis points make 1 percentage point). A similar increase in diesel prices, in contrast, would have added about 42 basis points to inflation, according to experts. Seven basis points might seem like nothing when inflation is at 5 percent, but it can still have a troubling impact when the wholesale price index is at 9.7 percent.