Pocket pinch: Fuel prices hiked again across India within 19 days

Pocket pinch: Fuel prices hiked again across India within 19 days

Petrol prices were hiked by 17 paise a litre and diesel by 21 paise on Monday after a 19-day gap.

As per the Indian Oil Corp website, petrol price in Mumbai rose to Rs 82.65 a litre on Monday, while diesel prices reached Rs 70.43.

The price of petrol went up from Rs 79.13 a litre on May 14 to Rs 79.45 a litre on May 16 while that of diesel, went up from Rs 71.80 on May 14 to Rs 72.

The previous prices recorded in these cities was Rs 78.03 (Kolkata, August 2014), Rs 83.62 (Mumbai, September 2013) and Rs 79.55 (Chennai, September 2013), according to IANS.

GETTYFuel prices have hit their highest level since August 2016 claim
GETTYFuel prices have hit their highest level since August 2016 claim

(IOC) raised the price of petrol by 15 paise a litre and diesel by 23 paise a litre on Tuesday. Fuel prices were last hiked 19 days ago, and the substantial hike is likely to pinch commuters across the country.

This spiral in prices of transport fuels comes amid continuous gains in crude oil prices globally. With crude touching $79.47 a barrel, and the rupee down more than 6 per cent to nearly 68 against the dollar, fuel prices were bound to be affected. State-owned oil marketing 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 during this period. Moreover, the rupee is also down more than 6% against the USA dollar so far this year.

"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. Oil PSUs that had kept rates unchanged for almost three weeks before Karnataka polls despite a spike in input cost, reverted to daily revision in prices as soon as the state voted to elect a new government on Saturday.

He further said that the prices of the cooking gas (LPG) and civil aviation fuel have remained static at Rs 1,375 per cylinder and Rs 95 per litre respectively.

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