Fuel prices reach record highs, diesel prices highest in 56 weeks

Fuel prices revised petrol diesel to cost more

Fuel prices revised petrol diesel to cost more

Petrol price in India today: HPCL, BPCL, IOC share prices gained up to 4 per cent as the oil marketing companies hiked petrol and diesel prices for the first time since April 24 after the conclusion of the Karnataka election voting. Despite input cost spiking, the Oil PSUs had kept the rates unchanged for almost three weeks.

"The changes in this month's prices have been as a effect of the average landed cost of super petrol, which increased by 1.18 per cent, (with) diesel increasing by 2.91 per cent and kerosene rising by 3.06 per cent", said ERC director-general Pavel Oimeke in a statement.

According to estimates, since the start of April- Indian Oil Corp, Bharat Petroleum Corp Ltd and Hindustan Petroleum Corp Ltd- have suffered the total loss of around Rs 1,500-1,700 crore with rising global crude oil prices. Petrol prices, too, hit a 56-month high of 74 rupees 80 paise per litre.

The energy regulator has signalled more pain at the pump as it announced that petrol, mostly consumed by private cars, is up by Sh0.34 a litre to Sh107.17 in Nairobi in its latest review.

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The rally of global oil prices on one hand, and the freeze on retail petrol and diesel prices on the other, has cut the average margins of oil marketing companies (OMCs) by about Rs 2 to Rs 3 per litre since April 2018. The rupee steadily weakening against the dollar only makes matters worse.

In the last few days, if you look at petrol prices for nearly 20 days, they were nearly unchanged across the country. Before stabilising the prices, it was increasing 25-35 paise every day.

Now that Karnataka election is out of the way, OMCs might go for a sharp increase in petrol, diesel prices to make up for the losses incurred since April 24. It is worth mentioning since June 16, 2017, prices of petrol and diesel are being revised daily. Earlier, government oil companies used to review oil prices twice a month.

Reacting to the price hike, former finance minister P. Chidambaram tweeted: "There we go again". In Kolkata, petrol will now cost Rs 77.50 a litre from Rs 77.32 a litre and in Chennai it will cost Rs 77.61 a litre from Rs 77.43 a litre.

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