Petrol, Diesel prices hiked 48 hours after Karnataka Elections 2018

Petrol, Diesel prices hiked 48 hours after Karnataka Elections 2018

After a sudden increase in worldwide rates, the PSU oil firms hiked the petrol price by a 17 paise a litre and diesel by 21 paise.

Prices were last revised on April 24 when they were hiked by 13 paise each. IOC Chairman Sanjiv Singh told to IANS on May 8 that the dynamic pricing was suspended temporarily despite a rise in worldwide rates, to avoid panic among consumers.

State-owned oil companies are estimated to have lost about Rs 500 crore as they absorbed higher cost resulting from the spike in worldwide oil rates and fall in rupee against the U.S. dollar. According to the International Olympic Committee website, now petrol in Delhi will be available at Rs 74.80 per litre. Since July 2017, petrol prices have increased by 9.3p per litre, while diesel has risen by 11.4p on average.

Those in Eldoret will part with Sh109.05 per litre of super petrol, Sh100.72 for diesel and Sh80.12 for kerosene.

India's petrol, diesel prices are among Southeast Asia's highest due to high taxes, which make up for almost 40-45% of the final retail price.

Oil PSUs raised the petrol price by 15 paise a litre and that of diesel by 23 paise on Tuesday.

"I can only say this that if we talk about the fuel price rise of oil, we have to remember that after deregularisation of fuel prices in 2015 - all companies take a call on whether or not and by how much to hike the prices". The rupee steadily weakening against the dollar only makes matters worse.

"The OMCs which sustained all the losses due to it, will now certainly try to recover their losses by increasing the oil prices" said Madan Sabnavis, Chief Economist at CARE Ratings. Considering this, the price of petrol and diesel should have gone up by at least Rs. 2 per litre since April 26.

In the last few days, if you look at petrol prices for nearly 20 days, they were nearly unchanged across the country. It is not yet confirmed if the government had given a go-ahead to prominent oil companies who revise oil prices daily to keep it at par with global indicators.

The oil companies - Indian Oil Corporation, Bharat Petroleum Corporation and Hindustan Petroleum Corporation - have been silent why they haven't carried out daily revisions in fuel prices in the last 21 days.

The government had asked OMCs to absorb Rs 1 per litre hike in their basket, but the companies have limited room for reduction in prices of fuel products.

A litre of Super petrol in Mombasa will cost Sh103.88, diesel Sh95.35 and Kerosene at Sh75.44. The fuel price hike continued for a second day today.

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