The oil companies have been losing Rs.8,000 crore per annum as they were being forced to sell petrol at subsidised rates and rupee depreciation against dollar has added fuel to fire. This price hike will provide some solace to Indian petro companies.
The point to note is that it is due to surcharges that petrol is so costly in India as besides central govt, state govts also put VAT on sale of petrol. You will now understand that why Banglaore has costliest petrol in India as down south Andhra Pradesh govt imposes maximum VAT on petrol.
