The falling value of the rupee has taken its effect on the economy and the latest victim is the fuel price. Petrol prices see a new high with a fourth hike in a span of six weeks. With effect from July 16, petrol will cost Rs 1.11 more before taxes. Actual increase will be higher and will vary from city to city depending on local taxes.
These hikes have completely negated the reductions made to fuel prices earlier this year, which was around the Rs 63 mark in most states prior to the depreciation of the rupee against dollar. In Mumbai, petrol will now be sold at Rs 78.75 a litre against Rs 76.90 earlier. Delhi prices are marginally better with a litre of petrol costing Rs 70.44, as against Rs 68.58.
As per practice of re-evaluating rates every fortnight, the inevitable price hike was due tomorrow, but has come in effect a day in advance. However, diesel prices will not be hiked now as the revision in its rates is due at the month end.