The continuing depreciation of rupee and the rise in global crude oil price may prompt state-run oil marketing companies (OMCs) to raise diesel and petrol price, reports indicate.
While the global crude price rose to 108.5 per barrel recently, the Indian rupee rose up to 62 a dollar in recent session. In rupee terms, the crude price increased to Rs 6,680.5 per barrel on August 15 as compared to Rs 6,588 per barrel on August 13, making a strong case for a fuel price hike.
Some reports indicate that petrol price may be raised by Re 1 a litre, while diesel price may be hiked by 50 paise a litre.
Once effected, this would be the seventh consecutive hike in petrol price and the eighth consecutive hike in diesel price.
RS Butola, Chairman of IndianOil stressed on the need to revise fuel prices. He said OMCs proposed to the ministry to allow a lump sum increase in diesel price and the proposal is in consideration.
It is learnt that state-run OMCs are making losses on petrol owing to falling Indian rupee and there is a case for revision.