NEW DELHI: Petrol and diesel will cost Rs.2.35 and Rs.0.50 more per litre, excluding state taxes, from midnight Saturday, state-run Indian Oil Corporation (IOC) announced.
The IOC said that it had to hike prices due to sharp depreciation of the rupee and hardening of crude prices in the international market due to the volatile situation in Syria.
The Indian rupee has lost more than 25 percent against the dollar since the beginning of the financial year. On Aug 28, 2013, the partially-convertible rupee touched a new record low of 68.80 against the dollar.
Concerns have been raised over escalation in tensions in Syria with a possible US intervention and, thereafter, the fallout on oil prices. India currently, imports almost 79 percent of its total crude oil requirements.
“Currently, the rupee-dollar exchange rate continues to be extremely volatile. Also the geopolitical situation in the Middle-East is leading to pressure on international oil prices as well,” the IOC said in a statement.
“In view of these conditions, movement of prices in international oil markets and rupee-dollar exchange rate is being closely monitored and subsequent price changes will reflect developing trends of the market.”
The three state-owned oil marketing companies (OMCs) had last raised prices of petrol and diesel by Rs.0.70 and Rs.0.50 more per litre, respectively on Aug 1, 2013.
In Delhi, the petrol price would increase to Rs.74.10 per litre while diesel would increase to Rs.51.97 per litre.