The government of India decided to de-regularize prices of both petrol and diesel and link them to the prices in the international market. The petrol and diesel prices now depend on the per barrel price of oil in the international market. If the the prices per barrel go down in the international market then the petrol and diesel become cheaper and vice versa. Oil companies have increased the prices of both oil and diesel on Saturday to bring them in line with the prices in the international market. This is the third time prices have gone up in June 2013. One reason for the rise in the prices of oil and diesel are the downward spiral of the Indian Rupee in comparison with the American Dollar. Last week the value of the Indian Rupee was 56 for one dollar, by the end of this week Rupee value has depreciated further and one US Dollar is now equivalent to sixty Indian Rupee.
On Saturday, June 29, 2013, the companies marketing oil in India have raised the price of oil further by Rupees‘1.87’ per Litre. This will be the base price rise added with the Value Added Tax which is different from state to state. The Oil Marketing Companies have announced that they would increase price of diesel as well in the near future. The rate of increase in petrol price for one city (Delhi) is as follows:
June 1 - Rs. 0.75
June 6 - Rs. 2.00
June 29 - Rs. 1.82
?Total Increase in June 2013 - Rs. 4.67
The increase of Rupees 4.67 is a substantial increase and this not only hurts the owners of vehicles but also the common man as the prices of essential goods also go up with the increase in the prices of oil and diesel. One can only hope that the downward fall of Rupees against the American Dollars is arrested and the common citizens in India get some relief from the high prices of fuel as well as other essential goods.