Petrol prices up Rs7.50 per litre

State-run oil marketing companies have effected a Rs7.50 a litre increase in petrol prices effective midnight today. While oil marketing companies have raised petrol prices by Rs6.28 per litre, local sales tax or VAT would take it to Rs7.50 a litre in Delhi.

Indian oil Corporation said in a release today that rising crude oil prices and falling rupee value have forced the company to increase the price of petrol by Rs6.28 per litre (excluding VAT / sales tax) with effect from mid-night of 23/24 May 2012.

This, IOC said, would not, however, compensate the company for selling petrol below cost till date during current financial year (2012-13), which, it said, would require an additional increase of around Rs1.50 per litre in selling price of petrol for the rest of the year.

Sales tax / VAT varies from 15 per cent to 33 per cent in the states. Fuel sales will now attract an additional sales tax of Rs0.94 to Rs2.07 per litre over and above the existing sales tax of Rs10.30 per litre to Rs18.74 per litre on petrol prices.

Following the hike, the price of petrol in Delhi will go up from Rs65.64 to Rs73.14 per litre; in Kolkata the price will go up from Rs70.03 to Rs77.53 per litre; in Mumbai the price will go up from Rs70.66 to Rs78.16, and in Chennai it will go up from Rs69.55 to Rs77.05 per litre.

OMCs last increased prices of decontrolled petrol on 4 November 2011 despite rising prices of crude oil and falling value of the rupee.