Petrol, diesel prices touch new high in two days

Wednesday, 16 May, 2018

Another dealer, who preferred not to be quoted, believed that fuel prices would further strengthen in coming days.

Though retail petrol and diesel prices in India follow worldwide movement of product prices, any developments on crude oil front also impacts product pricing.

Defending the freeze in petrol and diesel prices, Sanjiv Singh, Chairman and Chief Executive Officer (CEO) at Indian Oil Corporation (IOC) last week said that the increase will be passed on to the consumers in due time, without disclosing the increase or the time frame.

On the other hand, diesel was retailing at Rs 69.11 in Kolkata; Rs 70.88 in Mumbai, Rs 70.25 in Chennai and Rs 67.71 in Bengaluru. With this, the petrol prices now are at their highest level recorded since September 2013.

South African motorists are now facing increases of 74 cents per litre for oil, 81 cents per litre for diesel, and 78 cents for paraffin.

State-owned oil PSUs hiked petrol prices by 17 paise a litre and that of diesel by 21 paise per litre.

Meanwhile, Diesel will now cost Rs 66.57 in New Delhi, Rs 69.11 in Kolkata, Rs 70.88 in Mumbai and Rs 70.25 in Chennai.

State-run oil companies on Tuesday hiked petrol and diesel prices for the second straight day after a 19-day hiatus ahead of the assembly elections.

It may be noted that the gradual increase in prices of diesel and petrol were resumed after polling in Karnataka.

Oil PSUs kept retail prices unchanged for almost three weeks before Karnataka elections in spite of the surge in global fuel prices and Rupee's depreciation. The revisions were altogether stopped on April 25 due to polls in key southern state. Brent crude oil had touched $79.47 a barrel, its highest since November 2014, following concerns that United States sanctions on Iran are likely to restrict export of crude from one of the biggest producers in the Middle East.

Oil prices for June delivery was trading lower by a similar margin at Rs 4,846 per barrel with a business volume of 266 lots. Adding to the woes, the government has also denied reducing excise duty prices, thus taking a bigger hit on the public.