Rising fuel prices are forcing drivers off the road
Yui Mok PA
17 May, 2018, 01:03
A litre of diesel in Delhi will now cost ₹ 66.57, while in Mumbai, one litre of diesel now costs ₹ 70.88 in Mumbai. With Tuesday's hike, petrol now sells at four-year high level of Rs 74.95 a litre and diesel at an all time high level of Rs 66.36 a litre in Delhi.
The petrol prices are Rs77.79 in Kolkata, Rs82.94 in Mumbai and Rs77.93 in Chennai, respectively. Since September 2013, petrol prices are at their highest level and diesel prices are also at their all-time high in Delhi.
Petrol and diesel prices were raised on Monday after an unofficial 19-day freeze that mysteriously melted no sooner than the Karnataka polls had ended. 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 daily increase would have to be higher than normal to reach the true market reflective prices for these two products", said a source in an oil marketing company, asking not to be named. 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.
According to Telangana Petroleum Dealers Association, during the last three days, fuel prices were increased by 32 paise on petrol and 72 paise on diesel. "The recent trend of consistent depreciation in Indian rupee against United States dollar, if continued, may further elongate the period or require sharp hikes to bring retail fuel prices at market-determined level" said Bhatia.
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