Diesel prices hiked by 87 paise in India while Petrol becomes dearer by 36 paise

As a part of fortnightly review of retail prices of petrol and diesel by Oil Marketing Companies (OMCs) in India, Petrol becomes dearer by 36 paise while Diesel is costlier by 87 paise from Sunday midnight. The rise in prices driven by increased oil prices in international market and impact of USD to INR exchange rate in FOREX markets.

 

 

As retail prices of Petrol and Diesel in India are de-regularized by the government, revision takes prices on 1^st and 16^th day each month. All three major state owned OMCs – Indian Oil Corp (IOC), Bharat Petroleum (BPCL) and Hindustan Petroleum (HPCL) fixed prices based on average fortnightly impact of global oil price movement and foreign exchange rate.

As a result of recent price hike, Petrol would cost at ₹61.06 per litre in Delhi while Diesel price will be ₹46.80 per litre. 

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Indian Rupee against US Dollar since 1947

Indian Rupee touched low of 61.2 against US Dollar during July 2013. As India is largely dependent on imports for its energy needs such as crude oil; any depreciation of currency against other major global currencies such as US Dollar puts additional burden on Indian economy.

Historically, Indian Rupee was priced at 1 US Dollar in 1947 when India got independence. However, by 1975 it fell to 10.75 and further went down to 17.5 by 1990. Post globalization era, value currency was driven global market forces. This resulted in steady fall of Indian Rupee till 2006 when it touched 48.3 against USD.

The recession in the US during 2007 helped INR to climbed back to 38.5 levels. However, it could not hold on to its gain and crashed to 55.3 levels by 2011 and further it went past psychological 60 mark to touch 61.2 in July 2013.

The chart shows historical exchange rate of INR/USD since 1947: