Petrol, diesel prices hiked again
Highlights
- This is the fifth increase in six days as oil firms passed on the spike in cost of raw material
- Prices had been on a freeze since November 4 ahead of the assembly elections in 5 states
- The rate revision was expected soon after assembly elections ended
Petrol and diesel prices were hiked by 50 and 55 paise respectively in Delhi on Sunday. This is the fifth increase in six days as oil firms passed on to consumers the spike in the cost of raw material.
Petrol in Delhi will now cost Rs 99.11 per litre as against 98.61 per litre previously, while diesel rates have gone up from Rs 89.87 to Rs 90.42 per litre, according to a price notification of state fuel retailers.
In Mumbai, petrol and diesel prices were hiked by 53 and 58 paise respectively after which petrol in Mumbai will now cost Rs 113.35. Diesel in the financial capital will now be sold at Rs 98.13 per litre.
In Chennai, the price of petrol on Sunday was at Rs 104.90, while diesel was at Rs 95.00.
In Kolkata, petrol was being sold at Rs 108.53, while diesel at Rs 93.57 on Sunday.
Ending of a four-and-half-month long hiatus, fuel rates were revised first on March 22 this year.
Prices had been on a freeze since November 4 ahead of the assembly elections in states like Uttar Pradesh and Punjab — a period during which the cost of raw material (crude oil) soared by about USD 30 per barrel.
The rate revision was expected soon after assembly elections ended on March 10 but it was put off.
Oil companies, who did not revise petrol and diesel rates for a record 137 days despite prices of crude oil (raw material for producing fuel) rising to USD 117 per barrel compared to around USD 82 in early November, are now passing on to consumers the required increase in stages.
Meanwhile, Moody’s Investors Services on Thursday stated that state-owned fuel retailers Indian Oil Corporation (IOC), Bharat Petroleum Corporation Ltd (BPCL) and Hindustan Petroleum Corporation Ltd (HPCL) together lost around USD 2.25 billion (Rs 19,000 crore) in revenue for keeping petrol and diesel prices on hold during the election period.
India is 85 per cent dependent on imports for meeting its oil needs and so retail rates adjust accordingly to the global movement.
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