Threatening the effect of Inflation rate, the Oil companies have hiked petrol prices by Rs 7.50 per litre and its effect has to seen from Wednesday midnight.
State-owned oil firms, those earlier asked govt. for giving consultation to bear the past huge loses, raised the petrol price by Rs 6.28 per litre excluding local sales tax or VAT, while in Delhi the hike price is gone upto Rs 7.50 per litre adding 20 per cent VAT,, being applied all nearby states such as Punjab, Haryana, UP and other.
Now Delhi citizens have to pay Rs 73.18 per litre for petrol instead of Rs 65.64, while in Kolkata the price has gone Rs 77.88 per litre, Mumbai has Rs 78.57, and in Chennai, people have to pay Rs 77.53 per litre.
As per reports to media, this raising move is the biggest one from last years that is by 14 percent and at the time when value of rupee decreased rapidly against the US dollar.
Although this step will help State-owned oil firms to bear its loses of Rs 4,860 crore on petrol sales that is Rs 6.28 per litre on petrol, but effect of this have to bear by middle class people.
From last year, the price of petrol has been revised five times in order to bring domestic prices in line with accordance to the international market.
The hike translates into Rs. 7.50 per litre in Delhi. Petrol in Mumbai will cost Rs. 78.57 per litre as against Rs. 70.66 a litre, at present. In Kolkata, the increase will be Rs. 7.85 per litre to Rs. 77.88 per litre and Chennai saw rates going up by Rs. 7.98 to Rs. 77.53 per litre.
In a statement issued by country’s biggest oil firm, Indian Oil Company said, “Given the losses being incurred, the company is compelled to increase the price of petrol by Rs.6.28 per litre (excluding VAT/Sales Tax) with effect from midnight.”
Further, an official from Indian Oil said, “This excludes losses already suffered till date during current financial year 2012-13, which would require an additional increase of around Rs. 1.50 per litre in selling price of motor spirit (MS) for balance part of the year.”
Meanwhile, this is the highest ever hike in petrol in the country. However, the proper hike in petrol rates will be based from states to sate depending on sales and other taxes.
The opposition party BJP strongly protested the sudden hike in petrol. BJP spokesperson Prakash Javadekar said, “It’s atrocious and unbelievable. The UPA government on its third anniversary has given the gift of fuel hike to the people.”
He said, “This is no injustice and there is no justification for this.”
The West Bengal chief minister Mamata Banerjee, an important member of the UPA Government, said the price hike was “unjust and unilateral”.
Mamata Banerjee said, “We have not been consulted before taking the decision. The rise in the prices of petrol would add to the burden on the people. We shall oppose the move.”