Consumers were in for a shock on Thursday, as the government raised petrol prices by unprecedented Rs 7.50 a litre.
The increase was on the cards with the rupee continuing its free fall against the US dollar. It was just the quantum of the hike that has taken most by surprise. The rupee fell to a record life low of 56 per dollar on Wednesday.
Every one rupee rise in US dollar wipes out Rs 8,000 crore annually from revenue of oil marketing companies.
The government had decontrolled petrol price in June 2010 but rates were last increased on November 4 last year. This despite oil price rising by 14% and 7% fall in value of rupee against the US dollar.
How petrol prices moved up since 2002
15th June 2004: Rs 40.96 per litre (Crossed 40 mark first time)
05th June 2006: Rs 53.5 per litre (Crossed 50 mark first time)
29th Jan 2009: Rs 44.5 per litre (Fall in international crude prices led to softening of petrol prices from Rs 55.04 to Rs 44.55 per litre)
16th Dec 2010: Rs 60.46 per litre (Crossed 60 mark first time)
16th Sep 2011: Rs 71.92 per litre (Crossed 70 mark first time)
24th May 2012: Rs 78.57 per litre
Data Source: http://www.mypetrolprice.com