State-run Indian Oil Corp on Monday raised transport fuel cost to record highs in major metros, including Mumbai, on the eighth day of resuming the daily price change system, following a temporary suspension that lasted 19 days.
According to Indian Oil Corporation, the prices of petrol and diesel were increased by 33-34 paise per litre and 25-27 paise per litre respectively across cities like Mumbai, Delhi, Kolkata, and Chennai today.
As of 6 am today, petrol prices were at Rs. 84.4 per litre in Mumbai, Rs. 76.57 per litre in Delhi, Rs. 79.24 per litre in Kolkata, and Rs. 79.47 per litre in Chennai.
Diesel prices were at Rs. 72.21 per litre, Rs. 67.82 per litre, Rs. 70.37 per litre, and Rs. 71.59 per litre in Mumbai, Delhi, Kolkata and Chennai respectively.
At the current cost, the prices of both diesel and petrol were at a multi-year high in all four metros. Mumbai, meanwhile, has the most expensive petrol in the country, while diesel was costliest in Hyderabad.
According to Kotak Institutional Equities, oil marketing companies (OMCs) need to raise petrol prices by Rs 4.6 and diesel by Rs 3.8 per litre in the short term to make up for the deficit brought on by the 19-day period, where fuel costs remained unchanged.
Overall, the cost of petrol has been increased by Rs. 6.53 in Mumbai, Rs. 6.6 in Delhi, Rs. 6.52 in Kolkata, and Rs. 6.92 in Chennai this year alone.
Diesel prices, meanwhile, have been raised by Rs. 8.94 in Mumbai, Rs 8.18 in Delhi, Rs. 8.07 in Kolkata, and Rs. 8.76 in Chennai in the same period.
Unfortunately, there is little respite in store for the common man as the Economic Affairs Secretary Subhash Chandra Garg ruled out reducing excise duty on petrol and diesel in the near future.
Amid the increasing costs, the Congress has alleged that the Narendra Modi-led BJP government is using fuel prices as a tool to benefit the BJP during elections.
The rise in fuel costs can be attributed to the increasing price of crude oil in the international market, which climbed above $80 per barrel last week for the first time since November 2014.
Since India imports more than 80 percent of its crude oil requirement from the international market, the prices of petrol and diesel are directly proportional to international crude oil prices and rupee-dollar forex rate.Back to latest news