Petrol, diesel prices touch a record high under Modi government; set to go up further

Amidst the high-pitch political drama in Karnataka, the petrol and diesel prices were increased by 26-33 paise per litre across Delhi, Kolkata, Mumbai, Hyderabad and Chennai on Sunday.

While the petrol price touched a record high of Rs76.24 per litre, diesel climbed to its highest ever level of Rs 67.57.

The oil marketing companies, which incurred a loss of Rs 35 crore per day during the 19-day pre-Karnataka poll hiatus in fuel price hikes, are now revising the prices on a daily basis.

The PSUs have decided four weeks of the relentless rise in international oil prices to consumers. The new rates are passed on to fuel stations every day at 6 pm.

Petrol price on Sunday increased by 33 paise a litre in Delhi and diesel by 26 paise, according to price notification issued by state-owned oil firms.

Rates vary from state to state depending on the incidence of local sales tax or VAT. Prices in Delhi are the cheapest in all metros and most state capitals.

In India, Mumbai is the worst-hit with a price of Rs 84.07 per litre for petrol while Diesel is the costliest in Hyderabad where it is priced at Rs 73.45 a litre due to high local taxes.

As prices of petrol touch Rs 84.07/litre in Mumbai, locals say 'Why are prices so high in Mumbai when it is comparatively lower in Gujarat & Delhi? It is tough for those who have to travel everyday. We shell out Rs 120 for petrol regularly.' pic.twitter.com/E9BwoFRm5M

— ANI (@ANI) May 20, 2018

Petrol has breached Rs 80 mark in Bhopal (Rs 81.83 a litre), Patna (Rs81.73), Hyderabad (Rs 80.76) and Srinagar (Rs80.35), according to the price notification.

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Petrol in Kolkata costs Rs 78.91 per litre while it is priced at Rs 79.13 in Chennai. The cheapest petrol is available in Panjim where a litre comes for Rs 70.26.

The price of Diesel climbed to a stupendous level of Rs 73.34 in Trivandrum. Raipur, Gandhinagar, Bhubaneshwar, Patna, Jaipur, Ranchi, Bhopal and Srinagar are among other cities where diesel rates have crossed Rs 70 mark.

A litre of diesel costs Rs 71.94 in Mumbai, Rs 70.12 in Kolkata and Rs 71.32 in Chennai, the notification said. Diesel is the cheapest in Port Blair where it is priced at Rs 63.35.

Being asked if the government would cut excise duty on petrol and diesel, economic affairs secretary Subhash Chandra Garghe said that he has nothing to say on that front.

Locals in Delhi say 'The govt must bring down prices of petrol. They must reduce excise duty & use other measures. The prices are already so high'. Prices of petrol in Delhi touched Rs 76.24/litre. pic.twitter.com/4kdxnMTzDh

— ANI (@ANI) May 20, 2018

The government is watching the situation developing from oil prices hitting $ 80 a barrel, the highest since November 2014, and adequate steps will be taken, is all he said without elaborating.

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As a result of the week-long hiatus, the benchmark international rate for petrol, used for revising rate on 24 April, had gone up from $ 78.84 per barrel to $ 84.97 on 14 May. It has further risen to $ 84.97, indicating more daily hikes would be needed to level retail price with cost.

Similarly, benchmark international diesel rates during this period have climbed from $8 4.68 per barrel to $ 90.28 per barrel. Also, the rupee has weakened to Rs67.27 per US dollar from Rs66.62, making imports costlier.

(With inputs from agencies)