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Petrol, diesel touch all time highs

Petrol, diesel touch all time highs
New Delhi: No sooner had Karnataka polled to elect a new State government, state-owned IOC, HPCL and BPCL ended a hiatus in revising petrol and diesel prices that began on 25 April and reverted to the 11-month old practices of changing rates on a daily basis.
Today was the seventh straight day of price increase since oil PSUs on 14 May resumed daily price revision after a 19-day pre-Karnataka poll hiatus. In all, petrol price has been raised by Rs 1.61 a litre and diesel by 1.64 in last one week.
Oil PSUs are estimated to have lost about Rs 500 crore on absorbing higher cost resulting from the spike in international oil rates and fall in rupee against the US dollar during the nearly three-week hiatus.
Petrol price on Sunday touched a record high of Rs 76.24 per litre and diesel climbed to its highest ever level of Rs 67.57 as the oil PSUs passed on four weeks of the relentless rise in international oil prices to consumers.


Petrol price was increased by 33 paise a litre in India’s capital city Delhi — the highest since the daily price revision came into force in mid-June 2017, and diesel by 26 paise, according to price notification issued by state-owned oil firms

With this increase, petrol has touched an all-time-high, breaching the previous high of Rs 76.06 touched in Delhi on 14 September 2013. Diesel rates are also at the all-time high level.

The BJP-led government had raised excise duty nine times — totalling Rs 11.77 per litre on petrol and Rs 13.47 on diesel — between November 2014 and January 2016 to shore up finances as global oil prices fell, but then cut the tax just once in October last year by Rs 2 a litre.

The benchmark international rate for petrol, used for revising rate on 24 April, had gone up from $78.84 per barrel to $84.97 on 14 May. It has further risen to $84.97, indicating more daily hikes would be needed to level retail price with cost.

Similarly, benchmark international diesel rates during this period have climbed from $84.68 per barrel to $90.28 per barrel. Also, the rupee has weakened to Rs 67.27 per US dollar from Rs 66.62, making imports costlier.

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