Petrol prices hiked by Rs 7.5/litre

Hit by the sharp fall in the value of the rupee to a record low, oil marketing companies (OMCs) have hiked petrol prices with effect from midnight of May 24. At around Rs 7.50-8.00 per litre, this is the steepest hike ever in the price of petrol, causing even more heartburn to users of petrol-engined vehicles, who have already experienced a series of price increases in the fuel since the past year and a half. The actual increase in prices will vary from state to state depending on sales and local VAT taxes.

Deregulation of petrol prices in India came into effect in the second half of 2010 and by mid-2011, the oil companies started raising petrol prices on regular intervals. Petrol prices were last revised on December 1.

The government is expected to face considerable flak, given that some key allies like the DMK and West Bengal chief minister Mamata Banerjee have already demanded a rollback. The government though has refrained from biting the bullet on the price of diesel, testing the waters as it were with petrol.