Petrol price to rise by Rs 3.50 per litre. Price to go up and down in tune with global trend, will be reviewed every fortnight Diesel up by Rs 2, expect more hikes till price aligns with market. Retail price will have to rise Rs 1.80 more to match present crude level. Every $1/ barrel rise in crude price will push up pump price of petrol by 37 paise, diesel by 38 paise in Delhi at current duty and exchange rates.
With government say on motor fuel pricing gone, oil marketing companies will now set the street price of petrol in tune with the trend in Dubai and Singapore product trading centres. As a result, domestic prices will rise or fall every fortnight. Broadly, petrol price will rise by 37 paise a litre in Delhi if crude price rises by $1 a barrel, at current exchange and duty rates. Similarly, the diesel price will go up by 38 paise a litre for every $1 rise in crude price. But though the government lifted control on the main transportation fuel, it limited the increase to Rs 2 a litre with a view to staggering the impact on consumers and headline inflation.
