Petrol, diesel prices hiked

Marco Green
May 16, 2018

With the daily price revision of automotive fuels restarting on Monday after a 19-day hiatus due to Karnataka polls, petrol prices reached almost five-year high while diesel prices hit a new all-time high in Delhi.

Prices of petrol and diesel were on Wednesday hiked again for the third consecutive day, as petrol price cross Rs 75 in the national capital while diesel was retailing at Rs 66.57.

This despite benchmark worldwide rate for petrol going up from $78.84 per barrel, which was used for raising the price to Rs 74.63 a litre on April 24, to $82.98 now, according to sources privy to fuel pricing methodology. Diesel prices touched Rs 68.9 in Kolkata (Rs 68.68 on Monday), Rs 70.66 in Mumbai (Rs 70.43) and Rs 70.02 in Chennai (Rs 69.79). The prices will slightly vary in bunks operated by different oil marketing firms.It has increased by 23 paise per litre when compared to Sunday's prices. According to experts the three oil marketing companies - Indian Oil Corp, Bharat Petroleum Corp Ltd and Hindustan Petroleum Corp Ltd- together suffered losses of around Rs 1,500-1,700 crore due to the steep rise in prices.

The Congress leader P Chidambaram tweeted on Monday that the recent "interval" has coincided with Karnataka elections. Refiners add insurance, a few other charges as well as excise duty, state Value Added Tax (VAT) and Dealers commission to worldwide fuel rate to determine the retail price.

"The increase in petrol and diesel prices is on account of price movement of the products in the global market".

However, oil PSUs have no option but to increase the rates considering the rising price of crude oil globally.

This means that the country started the month of May with a fuel price deficit. Diesel, on the other hand, has already retailing at its highest-ever price in India. According to the website of Indian Oil Corporation Limited (IOCL), petrol was retailing at Rs 75.10 after an increase of 15 paise. Kuku Marwaha, President of Nagpur Truckers Unity, said that the transporters were bearing the brunt of high fuel prices. The centre had cut excise duty on petrol and diesel by Rs 2 per litre in October last year for the first time in four years.

Other reports by Click Lancashire

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