Diesel prices set to cross Rs. 70 a litre

Lloyd Doyle
May 16, 2018

In Delhi, the per litre price of petrol and diesel stood at Rs 74.95 and 66.36 respectively, on Tuesday.

State-run oil companies on Tuesday hiked petrol and diesel prices for the second straight day after a 19-day hiatus ahead of the assembly elections.

Diesel price in Mumbai: Shockingly, the diesel price in Mumbai was hiked most among metro cities, as the price has reached to Rs 70.88 per litre-mark, the highest among metro cities. 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.

In April, Union Petroleum Minister Dharmendra Pradhan said the Centre and the state governments have been considering bringing the petroleum products under the ambit of Goods and Services Tax.

State-owned oil PSUs hiked petrol prices by 17 paise a litre and that of diesel by 21 paise per litre. Analysts say prices could go up by additional Rs 4 per litre in coming days with oil firms trying to recover their marketing margins. According to experts the three oil marketing companies - Indian Oil Corp, Bharat Petroleum Corp Ltd and Hindustan Petroleum Corp Ltd- together suffered losses of around Rs 1,500-1,700 crore due to the steep rise in prices.


The BJP-led government had raised excise duty nine times between November 2014 and January 2016 to shore up finances as global oil prices fell, but then also cut the tax once in October a year ago by Rs 2 a litre.

Oil PSUs kept retail prices unchanged for almost three weeks before Karnataka elections in spite of the surge in worldwide fuel prices and Rupee's depreciation. Traders, businessmen, transporters and others were also seen showing dissatisfaction over the current levels of fuel prices. Today, diesel prices were increased in the range of 21 paisa to 23 paisa per litre.

The price of fuel is expected to skyrocket past R15 per litre.

However, before the Karnataka polls, fuel prices remained unchanged for 19 days. "Most of us have lost sizable business because of high diesel cost".

Other reports by Iphone Fresh

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