Petrol, diesel prices touch new high in two days

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Since September 2013, petrol prices are at their highest level and diesel prices are also at their all-time high in Delhi.

Petrol prices are likely to shoot up by Rs 2 to Rs 3 in the coming days, predict petroleum dealers associations citing that the prices were not revised over the last 19 days.

The BJP-led government had raised excise duty nine times between November 2014 and January 2016 to shore up finances as global oil prices fell, but then also cut the tax once in October past year by Rs 2 a litre. In Bengaluru, a litre of diesel is now for Rs 67.94 and in Hyderabad it is Rs 72.60.

Industry experts now expect the OMCs to breathe a sigh of relief and try to recover losses by re-calibrating it with the global prices, although the rise is likely to be gradual. Petrol reached over 75-mark in Delhi and is selling at Rs 75.10 today in the national capital. The situation is no different in other parts of the country.

It's a new day and an all new fuel price - for the fourth day straight. The petrol and diesel prices in city had remained stable for 20 days till May 14. Brent crude futures were at $79.36 per barrel, up 8 cents from their last close.

Diesel prices are now Rs66.57 in New Delhi, Rs69.11 in Kolkata, Rs70.88 in Mumbai and Rs70.25 in Chennai today. 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. The oil prices are now revised everyday at 6 am, after state-owned oil companies chose to do away with the 15-year-old practice of revising fuel prices on the 1st and 16th of every month. But when the fuel prices go up, so does the working capital for buying fuel.

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