Petrol price hiked by Rs. 1.55 a litre, effective midnight
Press Trust of India | Updated On: July 14, 2013 19:31 (IST)
New Delhi:
Oil companies today hiked the price of petrol by a steep Rs. 1.55 a litre, without taxes, as the falling rupee made imports costlier. The price of diesel was kept unchanged.
The new price will take effect from Sunday midnight.
Actual increase will be higher and will vary from city to city depending on local taxes.
Petrol price in Delhi has been hiked by Rs. 1.86 per litre to Rs. 70.44, effective Monday, as against Rs. 68.58 currently.
This is the fourth increase in rates in since June thanks to depreciation of the rupee against dollar.
Oil firms had on June 1 raised the price of the fuel by 75 paise, excluding VAT, and followed it with a Rs. 2 per litre increase on June 16 and a Rs. 1.82 on June 29.
The rupee, which plays a major role in petrol pricing, finished at 59.56/57 to dollar last week.
Indian Oil, in a statement released on its website on Sunday, said the
hike is due to "the combined impact of deteriorating exchange rate and
increasing international oil prices".
"Since last price change, the downward spiral of rupee against the dollar has continued to reach a low of Rs. 60.03 per dollar as against Rs.
58.94 per dollar during the previous fortnight. Further, international
MS prices have also shown an uptrend and increased from $115.29/bbl to
$117.19/bbl," it said.
The revision in prices, as per the practice of changing rates in line
with cost every fortnight, was due on Tuesday, July 16, but has occurred
a day earlier.
However, there will be no change in diesel prices just yet as the revision in its rates is due at the end of July.
With the latest increase, all of the gains made from four reductions in
prices earlier this year had been neutralised. The rates cuts had
brought down the price to Rs. 63.01 at the beginning of May.
Rupee Said to Spur India to Mull First Sovereign Bond Overseas
By Anto Antony & Siddhartha Singh -
Jul 12, 2013 1:08 PM GMT+0530 (bloomberg)
India is considering selling sovereign bonds abroad for the first time as policy makers weigh measures to help stem rupee declines, two officials with direct knowledge of the matter said.
The option is being assessed as State Bank of India, the nation’s largest lender that helped raise dollar deposits from Indians residing abroad at the turn of the millennium, is reluctant to repeat such fundraising because of potential losses from regulatory restrictions, the people said, asking not to be identified as the deliberations are confidential. A decision will be reached and implemented quickly, one person said.
The rupee, which has slumped
almost 9 percent in the past three months, closed little changed
yesterday at 59.68 per dollar.
July 8 (Bloomberg) -- Montek
Singh Ahluwalia, deputy chairman of India's Planning Commission, talks
about the rupee and the outlook for economic growth.
He spoke with Bloomberg TV India's Abhijit Neogy in Delhi.
(Excerpt. Source: Bloomberg TV India)
Raghuram Rajan, chief economic adviser to the government of India.
India’s government is assessing ways of financing a record current-account deficit when demand for emerging-market debt is waning on concern the U.S. may reduce monetary stimulus. The average yield offered by dollar-denominated sovereign bonds of developing nations has surged 1.17 percentage points since May 22, JP Morgan Chase & Co. data show. Indonesia this week raised $1 billion, pricing the 10-year securities to yield the most since January 2010.
Worst Performer
The rupee was the world’s worst performer against the dollar last month, fueling concern India needs higher reserves to stabilize it. The local currency touched an unprecedented low of 61.2125 a dollar on July 8.SBI is against taking deposits from expatriate Indians again because banking rules require locking up 27 percent of the funds as cash reserves or in government-approved securities, the two people said. All options, including a sovereign issuance, are on the table, Raghuram Rajan, the finance ministry’s top economic adviser, told reporters in New Delhi today.
As many as eight bankers are meeting Finance Ministry officials in New Delhi today to assess the feasibility of debt sales overseas. Rajan was to chair the gathering, with Barclays Plc, Deutsche Bank AG and Bank of America Corp. among those present, two Finance Ministry officials said separately yesterday.
Mumbai-based spokesmen for Bank of America and Barclays declined to comment on the meeting yesterday. Madhvendra Das, Mumbai-based spokesman for Deutsche Bank, also declined to comment yesterday.
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