Since January 2013, diesel rates have risen by Rs 8.33 over 14 monthly installments. IOC said it still loses Rs 5.49 on the sale of every litre of diesel.
“On April 1, prices of petrol were reduced by Rs 0.75 per litre, excluding state levies, resulting in retail selling price at Delhi going down by Rs 0.90 a litre,” IOC said.
“This reduction was effected on the back of a declining trend in international prices of MS (motor spirit) accompanied by a strengthening of the rupee-USD exchange rate,” IOC said.
The company said that since the last price change, while global oil rates have remained almost static, the rupee has strengthened further against the dollar.
“The continued appreciation of the rupee has resulted in reduction in petrol prices warranting the proposed decrease in selling price by Rs 0.70 a litre (excluding state levies) with effect from midnight of April 15/16,” IOC said today.
The company said oil firms are losing Rs 5.49 a litre on diesel, Rs 34.43 per litre on kerosene sold through the public distribution system and Rs 505.50 per 14.2-kg domestic LPG cylinder.
It projected the industry's revenue loss on the sale of the three products at Rs 120,000 crore in the current financial year. “The movement of prices in the international oil market and rupee-USD exchange rate is continuously under watch and developing trends reflected in future price changes,” it added.
