Petrol, diesel prices rise on Tuesday after 19-day freeze

  • Petrol, diesel prices rise on Tuesday after 19-day freeze

Petrol, diesel prices rise on Tuesday after 19-day freeze

The Automobile Association (AA) said last month's fuel price account was closed earlier by the Department of Energy, resulting in the postponement of a substantial 50 cent-per-litre increase brought on by a weakening rand and rising worldwide oil prices at the end of April.

A litre of diesel on the other hand will cost citizens in Delhi Rs 66.57, Rs 69.11 in Kolkata, Rs 70.88 in Mumbai, Rs 70.25 in Chennai, Rs 67.71 in Bengaluru and Rs 72.36 in Hyderabad.

Defending the freeze in petrol and diesel prices, Sanjiv Singh, Chairman and Chief Executive Officer (CEO) at Indian Oil Corporation (IOC) last week said that the increase will be passed on to the consumers in due time, without disclosing the increase or the time frame.

Meanwhile, Diesel will now cost Rs 66.57 in New Delhi, Rs 69.11 in Kolkata, Rs 70.88 in Mumbai and Rs 70.25 in Chennai.

The previous prices recorded in these cities was Rs 78.03 (Kolkata, August 2014), Rs 83.62 (Mumbai, September 2013) and Rs 79.55 (Chennai, September 2013), according to IANS.

Oil prices for June delivery was trading lower by a similar margin at Rs 4,846 per barrel with a business volume of 266 lots. 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.

Prices of petrol and diesel in India are worked out based on the average of the trailing 15 days of benchmarked Arab-Gulf fuel prices which move in tandem with global crude oil prices.

There is, however, some good news for you as after rising consistently crude oil prices fell on Wednesday on reports that there would be ample supply despite a cut in oil production by OPEC countries and U.S. sanctions against Iran, which is a major crude oil export country.

However, before the Karnataka polls, fuel prices remained unchanged for 19 days.

This means that the country started the month of May with a fuel price deficit. Kuku Marwaha, President of Nagpur Truckers Unity, said that the transporters were bearing the brunt of high fuel prices. Diesel price has also hit its all time high since abolition of LBT here. More taxes on petrol and diesel, more burden on the consumer.