Oil cos may hike petrol prices on Monday

New Delhi: The new year could be beginning with a Rs 2 fuel price hike. Oil companies will be meeting on Monday to revise rates of petrol but would need a political clearance given that Assembly elections are round the corner.

Experts say a hike of over Rs 2 is needed because of the weakening rupee.

A hike of about Rs 2.10-2.13 per litre in petrol price is needed because of weakening Indian currency, but oil companies are unlikely to revise rates on Saturday as scheduled and instead may do so on Monday.

A hike of about Rs 2.10-2.13 per litre in petrol price is needed because of weakening Indian currency, experts say.

State-owned oil companies, as per practice, revise rates of petrol on 1st and 16th of every month based on the average imported price and exchange rate during the fortnight.

The oil companies said they will decide on revising rates only on Monday. The rate change may, however, need a political clearance as Assembly elections in five crucial states, including Uttar Pradesh and Punjab, have been announced.

"While international price of gasoline (against which domestic petrol prices are benchmarked) are more or less at the same level (as at the time of last revision), the rupee has depreciated to about Rs 53 to a US dollar," an official said.

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