NEW DELHI (TIP): The rupee’s fall against the greenback spells bad news for fuel consumers who would have to pay more for petrol and diesel if the currency’s weakness persists.
The rupee dipped to a 20-month low to cross the 64-mark against the dollar on Thursday on sustained capital outflows by foreign funds and dollar demand from importers and banks.
Executives working with state fuel retailers said every Re 1 change in the dollar exchange rate pushes up pump prices of petrol and diesel by 45-47 paise a litre.The total impact could be higher in case prices of these products and crude also move up simultaneously in international trading hubs.The retailers revise pump prices of petrol and diesel, pricing of which are deregulated, every fortnight based on the rupee-dollar exchange rate and global product prices in the preceding 15 days.The companies raised pump price of petrol by Rs 3.96 a litre, including VAT in Delhi. Diesel price was also increased by Rs 2.37 per litre, including VAT in Delhi. This was the third increase in fuel prices this year. Petrol price was raised by 82 paise a litre and diesel by 61 paise on February 16. On March 1, petrol price went up by Rs 3.18 per litre and diesel became costlier by Rs 3.09.