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

Pauline Gross
May 15, 2018

OMCs, which had kept rates unchanged for almost three weeks before Karnataka went to polls despite a rise in global oil prices, reverted to a daily revision in prices soon after the elections.

In an attempt to make up for the losses made during the hold on price revision on petrol and diesel, state-run oil company, Indian Oil has revised the prices of both the fuels on two consecutive days. IOC Chairman Sanjiv Singh told to IANS on May 8 that the dynamic pricing was suspended temporarily despite a rise in global rates, to avoid panic among consumers. During the same period, the Indian National Rupee has weakened more than 5 per cent against the USA dollar, resulting in crude oil import getting more expensive for oil companies. This despite benchmark worldwide rate for petrol going up from United States dollars 78.84 per barrel, which was used for raising the price to Rs 74.63 a litre on April 24, to USD 82.98 now, according to sources privy to fuel pricing methodology.

In Calcutta, petrol will cost Rs 77.50, up from Rs 77.32, a litre and diesel Rs 66.68, compared with Rs 66.63 earlier.

Those in Eldoret will part with Sh109.05 per litre of super petrol, Sh100.72 for diesel and Sh80.12 for kerosene.

Even the wholesale price inflation of the country shot up for the month of April at 3.18 per cent due to high food and fuel prices. Today in various state capital the petrol price was hiked between 17 paisa to 18 paisa per litre, especially in Mumbai, where the price has been near Rs 83 per litre.

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Global crude oil prices have firmed up meanwhile adding to the pressure on oil companies.

Benchmark worldwide diesel rates during this period have climbed from $84.68 per barrel to $88.63. The price stood at Rs 82.65 per litre above 18 paisa compared to the previous day price of Rs 82.48 per litre.

The oil companies have made a hike in the price of petrol and diesel after an interval of 19 days.

The government had asked OMCs to absorb Rs 1 per litre hike in their basket, but the companies have limited room for reduction in prices of fuel products.

Petrol is most expensive in the northeastern town of Mandera and motorists will pay Sh120.98 a litre, or Sh17.1 more than in Mombasa, while diesel will cost 112.45 a litre. Since then, there had been no increase in the prices - something which analysts feel was directed by the government via an unofficial diktat to oil companies.

Other reports by GizPress

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