Fuel prices may rise as rupee weakens against dollar
15 Sep 2011
With the rupee touching a new low against the dollar, which would increase the cost of crude oil imports, petrol prices are expected to rise by Rs3 per litre. Oil company chiefs are to meet in Mumbai today to take a call in the matter according to reports.
This comes following IOC chairman's meeting with oil minister Jaipal Reddy for hiking of rates. Pressure is increasing on oil companies with the rupee touching a two-year low against the dollar, making import of crude oil more expensive. According to oil retailers they were losing Rs15 crore a day due to the big gap in global and domestic prices.
In Delhi, petrol is selling at Rs64 a litre and a Rs3 hike would see it touch Rs66 and 70 paise, while in Kolkata it is already at Rs68, and it would go up to Rs70 with the increase.
Mumbai would see petrol prices rise to Rs71 - 72 paise per litre, while in Chennai it would cross Rs70 as against the current rate of Rs67.50 paise.
However, director finance Indian Oil Corporation (IOC), P K Goyal denied the reports yesterday in an interview with CNBC TV18.
He said as of yesterday there was no such move on the part of oil marketing companies to hike prices.