The price of the petrol is increased by Rs. 1.63 per liter by oil marketing companies in India. This is the seventh time Since June the prices have crept up. The automobile companies will have a slight downside in their sale with this change. The companies had to increase the fuel price as the Indian currency value is falling.
The rise of 1.63/liter price is exclusive of tax. But if the VAT or local sales tax is included, the total price hike will go upto Rs .1.96 in Delhi. The price of petrol will be Rs. 76.06 per liter in Delhi and Rs 81.57 and Rs 83.63 per liter in Mumbai and Delhi. The new prices of petrol are updated after midnight on Saturday.
The reason for the rise in the petrol price is the hike in the average international price of petrol by $117.40/bbl from $114.44/bbl and INR USD exchange rate has reduced further to Rs. 66.02/$ from Rs 63.88/$. To adapt to these petrol prices had to be hiked on 13th to 14th September.
If the rupee value increases in the coming months then the price of the petrol can be decreased but if the decline continues the price will relatively increase. The customer will experience difficulties with the rising prices but the hike is necessary for keeping up the stability. The rise in the price of petrol totals to Rs. 10.80 per liter in the month of June. But if the state level tax is added it rises to 13.06 per liter.
The main striking effect of the increase of petrol price hike is rise in price of food products. The price of vegetables will be increased as the price of transportation increases. The common people will be mostly affected by this process. Controlling the fuel price is the best way to control the price of other commodities.