Petrol, diesel prices hiked for the third time within four days

Henrietta Brewer
May 17, 2018

In the other metropolitan cities of Kolkata, Mumbai and Chennai also, petrol prices were at fresh multi-year high levels of Rs 77.65, Rs 82.79 and Rs 77.77 a litre respectively, data from the International Olympic Committee website showed. After a relief of 19 days, fuel prices have again started moving up in line with global crude oil prices, as oil marketing companies have made a decision to pass on the burden to consumers after a freeze of 19 days, which started from April 24. After the revision, a litre of petrol was priced at Rs 74.8 in Delhi, while diesel cost Rs 66.14.

Diesel price in Kolkata: Diesel price here was valued at Rs 69.11 per litre higher by 21 paisa as against previous price of Rs 68.90 per litre. On Monday, the first hike in petrol, diesel rates was witnessed.

Congress president Rahul Gandhi tweeted: "Karnataka finishes voting, FUEL prices rise to a four-year high!" Brent crude oil had touched $79.47 a barrel, its highest since November 2014, following concerns that USA sanctions on Iran are likely to restrict export of crude from one of the biggest producers in the Middle East. Also, the rupee has weakened to Rs 67 per USA dollar from Rs 66.62, making imports costlier.

However, before the Karnataka polls, fuel prices remained unchanged for 19 days.

The new prices took effect at 6 a.m. on Monday. Indian Oil Corp (IOC) Chairman Sanjiv Singh last week said that the state-owned firms were "temporarily moderating" prices to avoid sharp spikes and panic among consumers.

"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.

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