First major petrol price hike in 6 months happened last night, with petrol prices rising by Rs 7.5 (odd) per liter. Petrol prices now in Mumbai stand at Rs 78.57 per liter. The hike was announced yesterday in the afternoon.
The oil companies, which had in the fiscal ending March 31, 2012 lost Rs. 4,860 crore on petrol sales, are now losing Rs. 6.28 a litre. After including the 20% VAT, the increase in petrol price in India came to Rs 7.5 (odd) per liter. [source]
I guess there has never ever been such a huge hike earlier. 10 years back petrol used to cost us Rs 32 odd and now it’s more than double of that!
The two main reason behind the hike in Petrol prices:
- Loss to the state owned companies
- Depreciating rupee
Automobile companies would now shift their focus on Diesel & CNG cars.
Check out this 10 year chart of fuel prices:
Check out this Infographic on the petrol price hike since last one year:
Interesting read: Petrol or Diesel: Which saves more?