Monday 18 October 2021
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HomePoliticsIndiaPetrol, diesel prices hiked after 19 days

Petrol, diesel prices hiked after 19 days

After a 19-day pre-Karnataka poll hiatus, petrol price on Monday was hiked by 17 paise a litre and diesel by 21 paise as PSU oil firms began passing on the spike witnessed in international rates to consumer

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 New Delhi:  Oil PSUs, who had kept rates unchanged for nearly three weeks before Karnataka went to polls despite input cost spiking, reverted to daily revision in prices no sooner had the State voted to elect a new government on Saturday.
and diesel prices were hiked today after a 19-day hiatus and two days after the Karnataka election. Petrol in Delhi is at a 56-month peak and the price of diesel has crossed Rs. 66 a litre for the first time, to a new all-time high.
prices are up by 17 paise a litre in Delhi and Mumbai, and 18 paise a litre in Kolkata and Chennai, according to the Indian Oil Corporation. Diesel prices have been raised by 21 paise a litre in Delhi, 5 paise in Kolkata, and 23 paise in Mumbai and Chennai, according to Indian Oil’s website.

 

State-owned oil companies are estimated to have lost about Rs 500 crore as they absorbed higher cost resulting from the spike in international oil rates and fall in against the US dollar.

Oil PSUs, which have been since June last year revising auto fuel prices on a daily basis to reflect changes in the cost, have kept pump rates static since 24 April, an analysis of daily price notification issued by oil companies showed.

and diesel prices were last revised on 24 April when they were hiked by 13 paise each. But prices were frozen thereafter. This despite benchmark international rate for petrol going up from $78.84 per barrel, which was used for raising the price to Rs 74.63 a litre on 24 April, to $82.98 now, according to sources privy to fuel pricing methodology.

The benchmark international diesel rates during this period have climbed from $84.68 per barrel to $88.63. Also, the has weakened to Rs 67 per US dollar from Rs 66.62, making imports costlier.

State-owned oil companies in June last year dumped the 15-year old practice of revising rates on 1 and 16 of every month and instead adopted a dynamic daily price revision to instantly reflect changes in cost.

If this practice was followed in letter and spirit, and diesel prices should have been increased by Rs 1.5 a litre in last 19 days, an analyst tracking the sector said.

 

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