Daijiworld Media Network - Udupi
Udupi, May 24: In view of the impact of declining value of rupee, which touched Rs 56 to a dollar, the state owned Oil Marketing Companies (OMCs) raised petrol prices by over Rs 7.50 a litre.
The single sharpest hike was announced yesterday after the budget session got over. This is considered good news for oil marketing companies which were incurring losses of Rs 400 crore per day for selling subsidized fuel.
In a statement, the country's largest refiner, IOC, said it had been "compelled" to hike the price after sustaining losses of 1, 050 crore billion rupees since the start of the current financial year, April 1.
Thought price hike is inevitable, congress has asked all its state governments to cut taxes on fuel prices.
Attributing the steep hike in petrol prices based on the declining value of rupee, planning commission on Wednesday said it will have immediate impact on the price situation but things will stabilize in the long run.
But as for the public, the unexpected announcement from the central government about the hike in petrol price caused panic. People were seen lined up at petrol bunks to escape immediate effects of the hike.
The rush was seen from 7 to 8 pm at the petrol bunks. However, as soon as the news was announced, some of the petrol bunks closed early in the city. Some petrol bunk gave limited petrol with the intension of much profit in increased price from the following day.