Fuel costs to be hiked by 70 paise from midnight

India's oil promotion organizations Thursday declared a increase in fuel costs by 70 paise a liter, with effect from late night, stating improving worldwide oil costs and decrease in the rupee's value.


"It has been made the decision by Native indian Oil Organization to improve MS (motor spirit) costs by Rs.0.70 per liter (excluding condition levies) with effect from late night of September 23," Native indian Oil Corp (IOC) said in a declaration.

"The said modification has been required due to improving worldwide oil costs and activity in INR-USD return amount," it included.

The regular cost of Native indian bag of raw for the appropriate costs interval regarded is $101.28 per gun barrel while worldwide fuel cost is $111.59 per gun barrel. The rupee-dollar return amount is around Rs.55.36 per money.

The company said that at these stages, it is running into failures of about Rs.1.41 per liter on fuel revenue in the household market.

"However, as the cost activity is quite unpredictable, it has been made the decision that an improve of Rs.0.70 per liter may be impacted at this point and the scenario seen for a while based on which a further perspective will be taken at an appropriate time," IOC said

During present financial year, the business has already gathered failures of Rs.1,053 crore on fuel revenue during the first two several weeks due to great worldwide oil costs, destruction in rupee-dollar return amount and lack of ability of oil promotion organizations to change fuel costs to preferred stage.

In inclusion, IOC said HSD (high rate diesel), SKO (kerosene) and LPG (cooking gas) costs stay the same since May 2011 leading to present stage of under restoration of Rs.10.01 per liter on diesel fuel, Rs.27.20 per liter on oil and Rs.319 per cyndrical tube on food preparation gas.

"At these stages, estimated under restoration of IOC during 2012-13 for these three items is Rs.86,000 crore. In these conditions, the business is incapable to keep pressure of any further failures," it included.
Increase in fuel cost shall differ from 70 paise per liter to 91 paise per liter (including condition levies) based on condition taxation.

In Delhi, the cost improve will be 70 paise per liter. The effect of condition tax shall be nil on the improve as per Delhi national May 16 value included tax exception to this rule order.

While in Delhi, the improved cost would be Rs.68.48, it would be Rs.74.23 in Mumbai. In Chennai it will be Rs.73.16, while in Kolkata it will be Rs.73.61.

The improved costs in Hyderabad and Bangalore would be Rs.75.80 and Rs.77.30, respectively.