Petrol prices hit new high

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Petrol prices hit new high

Buoyed in anticipation of Karnataka assembly election outcome, BJP government at the Centre at last lifted the embargo on petrol and diesel prices after a 19 days political hiatus.

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.

Last time, petrol and diesel prices were revised on April 24. Chairman Sanjiv Singh had earlier said that his firm had chose to "temporarily moderate" prices. During the same period, the Indian National Rupee has weakened more than 5 per cent against the U.S. dollar, resulting in crude oil import getting more expensive for oil companies. According to the International Olympic Committee website, now petrol in Delhi will be available at Rs 74.80 per litre.

In Nairobi, Super petrol will retail at Sh107.17 per litre, diesel at Sh98.64 while a litre of Kerosene will go for Sh78.22 for the next month.

Last June, Indian oil companies had moved from a "once-in-a-fortnight" revision of petrol and diesel to daily revisions. The petrol price in the national capital is at six-year high. State-run oil companies said that the price revision was necessary because of increasing global oil rates, PTI reported.

Sources from multiple OMCs told Business Standard that the companies are going to recover the losses incurred in the first two weeks of May in upcoming weeks through daily upward revisions. Also, the rupee has weakened to Rs 67 per USA dollar from Rs 66.62, making imports costlier.

Global crude oil prices this month hit their highest in more than three years on record Asian demand and after the United States said it would re-impose sanctions on major oil exporter Iran, which is an important supplier to India. Then why does government pretend that it is not interfering in determination of fuel prices? Before stabilising the prices, it was increasing 25-35 paise every day. Because of the reduction in excise duty, diesel prices had on October 4, 2017, come down to Rs 56.89 per litre and petrol to Rs 68.38 per litre.

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