Date:17/10/2002 URL: http://www.thehindu.com/2002/10/17/stories/2002101707390100.htm

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Hike in petrol prices

By Our Special Correspondent

NEW DELHI OCT. 16. Petrol and diesel prices were increased today by 33 to 53 paise a litre and by 32 to 57 paise respectively.

The Indian Oil Corporation (IOC) made the announcement after the fortnightly review by the oil companies indicated that the consumer would have to bear the burden. With Iraq-U.S. tensions rising and the OPEC decision to maintain existing production quotas, international prices have continued firming up and the oil companies are reflecting this in the retail prices of their products.

The price of petrol will now be Rs. 30.24 a litre in Delhi, Rs. 32.77 in Chennai, Rs. 34.95 in Mumbai and Rs. 31.68 in Kolkata. Diesel prices will now be Rs. 19.23 a litre in Delhi, Rs. 21.16 in Chennai, Rs. 24.54 in Mumbai and Rs. 20.62 in Kolkata.

An IOC release says, in accordance with the mechanism to review prices every fortnight after dismantling of the administered pricing mechanism, the oil marketing companies reviewed the prices of petrol and high-speed diesel. "The increase in prices has been moderated and the entire impact of increase in international prices has not been passed on to the consumer, the differential being absorbed by the oil companies."

It notes that the price hike in Mumbai is comparatively higher due to the recent hike in the octroi on crude oil being processed by Mumbai refineries. The increase in other States will depend on the sales tax rates applicable, it is pointed out.