- Petrol, diesel prices hiked in range of 28-31 paise/litre in four metros
- Five hikes come after three weeks of steady rates
- Oil companies need to raise petrol prices by Rs. 4.6/litre, says Kotak
Here are 10 things to know:
Petrol prices have been raised in the range of Rs 0.97-1.03 per litre across Delhi, Kolkata, Mumbai and Chennai in five straight days. Diesel prices have been raised by Rs 1-1.24 per litre. Petrol and diesel prices have been hiked for five straight days.
Prior to the five consecutive hikes, petrol and diesel prices were not raised for about three weeks before Karnataka elections. Because of this, oil marketing companies (OMCs) now need to raise petrol prices by Rs 4.6 per litre, or 6.2 per cent, and diesel rates by Rs. 3.8 per litre, or 5.8 per cent, according to brokerage Kotak Institutional Equities.
With Friday's increase, diesel price in Delhi was at a fresh all-time high while petrol price in Delhi was about 0.6 per cent away from an all-time high of Rs 76.06 per litre, recorded in September 2013.
Petrol price (in Rs per litre) Diesel price (in Rs per litre) 18-May 13-May 31-Mar 31-Dec 18-May 13-May 31-Mar 31-Dec Delhi 75.61 74.63 73.55 69.97 67.08 65.93 64.4 59.64 Kolkata 78.29 77.32 76.26 72.72 69.63 68.63 67.09 62.3 Mumbai 83.45 82.48 81.41 77.87 71.42 70.2 68.58 63.27 Chennai 78.46 77.43 76.29 72.53 70.8 69.56 67.93 62.83 (Source: iocl.com)
With effect from 6 am on Friday, May 18, petrol retailed at Rs 75.61 per litre in Delhi, Rs 78.29 per litre in Kolkata, Rs 83.45 per litre in Mumbai and Rs 78.46 per litre in Chennai, according to Indian Oil Corporation. Diesel prices were at Rs 67.08 per litre in Delhi, Rs 69.63 per litre in Kolkata, Rs 71.42 per litre in Mumbai and Rs 70.8 per litre in Chennai.
With international crude oil prices still near 2014 highs and the rupee down more than 6 per cent against US dollar so far this year, domestic petrol and diesel prices may continue to rise in the very short term, say experts.
Crude oil prices climbed above $80 per barrel on Thursday for the first time since November 2014, before retreating on a stronger dollar and climbing US output to end unchanged. Global inventories of crude and fuel have dropped sharply in recent months owing to robust demand and OPEC or Organization of the Petroleum Exporting Countries-led production cuts.
"The current hike has come in the wake of US sanctions that are expected to severely limit the exports from Iran, one of the biggest producers in the Middle East... For the Indian consumer short-term pain at the pump is going to stay... we do not expect a very steep hike in the prices in the medium term, the prices in the short term would remain volatile with a positive bias," said Rahul Agarwal, director, Wealth Discovery/EZ Wealth. (Read more)
So far this year, petrol prices have been increased by Rs 5.64 per litre in Delhi, Rs 5.57 per litre in Kolkata, Rs 5.58 per litre in Mumbai and Rs 5.93 per litre in Chennai, according to data from Indian Oil, the country's largest fuel retailer. Diesel prices have been raised by Rs 7.44 per litre, Rs 7.33 per litre, Rs 8.15 per litre and Rs 7.97 per litre respectively. (Also read: Excise Duty Cut Rules Out | Government for bringing petrol under GST)
The rupee has recovered for two straight days against the US dollar. On Thursday, it closed at 67.70 against the greenback. Despite the pullback, some experts believe that the possibility of the rupee heading towards the 70 mark against the US dollar is increasing.
Currently, petrol and diesel rates in the country are determined broadly by global crude oil and rupee-dollar forex rate. That is part of a daily system of fuel price revisions adopted in June last year.
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