New Delhi, Dec 16: PSU oil companies on Friday have deferred the hike in petrol price of Rs 2.26 a litre and Rs 1.78 increase in diesel. The hike in the prices was planned before but is now deferred.
Indian Oil Corporation (IOC), Bharat Petroleum Corp (BPCL) and Hindustan Petroleum Corp (HPCL) revise rates, particularly when a price cut is necessitated, on 1st and 16th of every month based on average international price in the previous fortnight.
The hike in price in India was planned because of the rise in international petrol price.
The surge in international price, which was moderately tempered by strengthening of the rupee to Rs 68.05 from Rs 68.23 a dollar, had necessitated Rs 2.26 a litre hike in petrol and Rs 1.78 in diesel, officials said.
After taking VAT into the account, the real hike after considering VAT would have been about Rs 2.90 per litre and the same for diesel would have been Rs 2.10. Petrol in Delhi currently costs Rs 66.10 a litre and diesel Rs 54.57.
IOC Chairman B Ashok justified the deferment move, saying “it is not compulsory” to change rates on a particular date.
“We continue to review it and will take an appropriate decision at the right time,” he said. “Price revision is being done in a calibrated manner.”