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Rising international crude oil prices leave Indian oil companies with little choice but to pass on the burden to consumers.
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Updated : Dec 15, 2010, 08:39 AM IST
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Here is a piece of bad news that would sober your festive mood ahead of the New Year. You will have to shell out `3.25 more for a litre of petrol from today. Petrol in Bangalore will now cost Rs62.91 per litre. The new prices came into effect from Tuesday midnight after Bharat Petroleum Corporation Limited (BPCL), in a nation-wide move, hiked prices by Rs2.96 per litre.
There is still a day left for you to fill up your fuel tanks before retailers Indian Oil Corporation (IOC) and Hindustan Petroleum Corporation Limited (HPCL), too, step up their prices from Wednesday midnight.
More bad news may follow later as a hike in diesel rates is likely to be considered by an empowered group of ministers headed by Pranab Mukherjee on December 22.
Why is the price hike now?
The fuel price hike was planned after the winter session of Parliament which ended on December 13. International crude oil prices have touched the $90 per barrel mark. IOC and other state retailers HPCL and BPCL are losing `4.17 per litre on selling petrol.
The basket of crude oil that India buys was at $89.34 per barrel on Monday. It has averaged $88.47 per barrel in December as against $79 a barrel at the time of the last hike in petrol price on November 9.
