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Hike in Fuel price

February 16, 2015
in Uncategorized
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Hike-FuelReversing the trend in falling fuel prices, petrol price was hiked by 82 paise and diesel by 62 paise in India last midnight. Prices in Bhutan will be revised today midnight.

The hike comes after 10 downward revisions when it came to petrol prices and seven downward revisions when it came to diesel prices since August last year.

The hike has been attributed to the weakening of rupee against the dollar and rise in global fuel price. As of today, Indian rupee is being traded at Rs 63.2 a dollar.

With the rupee depreciating against the dollar, oil importers in India are required to pay more rupees to buy the same value of dollar. India imports 80 percent of fuel requirements from abroad, while Bhutan imports all its fuel requirements from India.

After the hike, petrol is likely to cost Nu 56.2 a litre and diesel Nu 48.1 a litre.

Fuel prices in India are largely determined by global prices as well as fluctuations in exchange rate between the rupee and the dollar.

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