Diesel price touches record high, petrol reaches 56-month peak, as Centre again increases petro rates

52 mins ago | By : ILT Staff Reporter

Petrol price in Delhi was hiked to Rs 74.80 per litre from Rs 74.63 while diesel rates were increased to Rs 66.14 a litre from Rs 65.93. (Representational image)

NEW DELHI: The diesel prices touched a record high while petrol reached a 56-month peak when the Centre on Monday (14.05.2018) hiked petrol price by 17 paise a litre and diesel by 21 paise, as Public Sector Undertaking (PSU) oil firms passed increased in price witnessed in international market to consumers.

Transporters feared that the increase in prices of diesel and petrol may fuel inflation.

Petrol price in Delhi was hiked to Rs 74.80 per litre from Rs 74.63 while diesel rates were increased to Rs 66.14 a litre from Rs 65.93, the price notification issued by state-owned oil marketing companies said.

Oil PSUs, who had kept rates unchanged for nearly three weeks before Karnataka went to polls despite input cost spiking, reverted to daily revision in prices no sooner had the state voted to elect a new government on Saturday. The results of Karnataka polls would be declared on Tuesday (15.05.2018).

Media reports said state-owned oil marketing companies are said to have lost about Rs 500 crore as they absorbed higher cost resulting from the increase in rates in international oil prices and fall in rupee against the US dollar.

Oil PSUs, which have been since June last year revising auto fuel prices on a daily basis to reflect changes in the cost, have kept pump rates static since April 24, an analysis of daily price notification issued by oil companies showed.

India Oil Corporation (IOC) Chairman Sanjiv Singh last week said the state-owned firms were “temporarily moderating” prices to avoid sharp spikes and panic among consumers.

The shares of IOC on Monday gain about 0.70%.

The National Democratic Alliance government has maintained that it has got no role in pricing since India’s three government-run oil marketing companies—Indian Oil Corp. Ltd (IOCL), Bharat Petroleum Corp. Ltd (BPCL) and Hindustan Petroleum Corp. Ltd (HPCL)—introduced dynamic fuel pricing in June, joining countries such as the US and Australia, where fuel prices change daily depending on global oil price fluctuations.

Petrol and diesel prices were last revised on April 24 when they were hiked by 13 paise each. But prices were frozen thereafter.