Indian Oil Corporation (IOC) has decided to increase in retail selling price of petrol by Rs 0.60/ litre (excluding state levies) and increase in retail selling price of diesel (retail) by Rs 0.50/litre (excluding state levies) w.e.f midnight of Feb. 28 Feb/Mar. 1, 2014.

The price of Petrol were last revised upwards by Rs 0.75/litre (excluding state levies) w.e.f Jan 2014. Since the last price change, international prices of MS have increased from USD 116.04/bbl to USD 118.10/bbl, and the INR-USD exchange rate has also depreciated from Rs. 62.02/USD  to Rs. 62.12/USD. The combined impact of both these factors, has warranted the increase in Petrol prices by Rs. 0.60/ litre (excluding state levies).
 
In addition to above, in pursuant to GOI order dated Jan. 17, 13, OMCs have been authorized to increase the retail selling price of Diesel (Retail) within a small range every month until further orders. Accordingly, since then, retail diesel prices are being revised every month. In continuation of above, Indian Oil Corporation has decided to effect the aforesaid increase in retail diesel prices. Even after the current increase, under recovery on Retail Diesel shall stand at Rs 8.37/litre.
 
The corporation is continuing to suffer under-recoveries on sale of SKO (PDS) of Rs 36.34/litre & LPG (Dom) of Rs 605.50/cyl.
 
For the year 2013-14, the corporation is expected to incur under-recovery of around Rs 740 billion on sale of three sensitive products (Industry around Rs 1,430 billion).
 
The movement of prices in international oil market and INR-USD exchange rate is being closely monitored and developing trends of the market will be reflected in future price changes.

Shares of the company gained Rs 0.15, or 0.06%, to settle at Rs 248.10. The total volume of shares traded was 79,280 at the BSE (Friday).