We recently talked about a petrol price increase expected in India in June 2012, well comes out that this time, oil companies and government has take a decision a week sooner than we expected. The priced of Petrol have been hiked across India by Rs. 7.50 Per litre making the price or petrol across 4 metros as follows –
Petrol Price in Delhi is now Rs. 73.14 per Litre
Petrol Price in Mumbai is now Rs. 78.16 per Litre
Petrol Price in Kolkata is now Rs. 77.53 per Litre
Petrol Price in Chennai is now Rs. 77.05 per Litre
Petrol Price in Bengaluru is now Rs. 81.01 per Litre
This huge price increase which is over 10% hike in the price has come in the wake of weakening Indian Rupee against US dollar and price change in the International crude oil prices since the last change in December 2011. This is the most severe (in one go) price increase in th petrol prices in India so far.
There has been long queues at the Petrol pumps and filling stations as the cars two wheelers which run on Petrol are waiting to get the fuels at existing rates across India as the price increase will become effective from midnight between the 23 and 24 May 2012.
This hike in price is going to further strengthen the demand for diesel run cars in India as the prices of Diesel are now close to half of the prices of petrol which makes the running cost of a diesel car less than half of the similar petrol car as diesel cars tend to deliver more mileage compared to a petrol car.
Although we wish that this hike had not taken place but we can do little to change such price hikes. There is hefty taxes and duties levied by state and center governments on Petrol and they seem to not touch these taxes when the prices are skyrocketing. Petrol is a soft target when it comes to price hike as Diesel price change will directly attack inflation numbers which is a bigger headache for the economy and the governments so the petrol is usually the fuel which faces all the heat. Since petrol is mostly used by middle class which uses two wheelers and small petrol cars, thee middle class is the one which is most impacted by these price hikes. God knows where we are heading with such crazy inflation and such price hikes !
Updated on 2nd June 2012