Petrol price up by 1.5/ltr, diesel 45p

New Delhi: State-run fuel retailers on Friday increased petrol price by Rs 1.50 a litre and diesel by 45 paise per litre, excluding local tax. The actual pump price will be slightly higher and vary according to the tax (VAT) in 

each state. 
    This is the first time that petrol price has been raised this year, and comes within a month of a 30-paise reduction announced on January 18. But for diesel, it is the second raise in a month after the 45 paise a litre hike, excluding tax, on January 18. 
    Senior executives working with fuel retailers were at pains to emphasize that the high rate of state taxes on fuels, rising up to 30% in some cases, was responsible for magnifying the impact of their "marginal increase". 
    The raise indicates the Manmohan Singh-led UPA government's resolve to reform fuel pricing with a view to pruning a ballooning fuel subsidy bill, estimated at Rs 163,000 crore this fiscal for diesel, cooking gas and kerosene.IOC to still lose 10.27/L on diesel 
    The government had on January 17 allowed state fuel retailers flexibility to raise diesel price in "small dozes" every month till pump prices align with market rates. The present pump price of diesel is Rs 10.70 a litre less than the fuel's benchmark rate in the Singapore bulk market. 
    A statement by IndianOil Corporation, the country's largest refiner-retailer, said it would continue to lose Rs 10.27 a litre on diesel even after two consecutive revisions as the cost of crude had risen by 4% to $113.24 a barrel. 
    The government had removed pricing controls on petrol in June 2010. The fuel's price was last raised in October by about 29 paise after the government increased dealer commission. The IOC statement said Friday's price revision was sparked by a 7.5% increase in its benchmark price since the last revision. 
    It said the fortnightly average for crude price has increased from $109 per barrel at the time of the last revision on January 18 to $113.24. Similarly, the 15-day average of international price of gasoline—trade name for petrol—has risen from $119.59 a barrel to $128.57.