Mumbai, January 16: Petrol and diesel prices have touched a new high in many cities in the last few months, raising concerns about inflation. Petrol has reported a three-year high as international crude prices hover around $70 a barrel. Petrol prices in the national capital crossed Rs 71 per litre, which is the highest since August 2014. Meanwhile, the diesel prices have touched a record high of Rs 61.88 per litre. As per details on Indian Oil Corporation website, diesel on Monday was sold for Rs 61.74 per litre in Delhi, Rs 64.40 in Kolkata, Rs 65.74 in Mumbai and Rs 65.08 in Chennai.
As international oil rates continue to rally, state oil companies and private firms price petrol and diesel within a few paise of each other. According to a report by Economic Times, petrol prices in Delhi and Chennai are highest since August 2014 while in Kolkata, they are highest since July 2015. In Mumbai, petrol prices in Mumbai are the highest in since October 2017 in Mumbai. In Mumbai, diesel is being sold at Rs. 65.90 in Mumbai with a local sales tax or VAT rates being higher.
On Tuesday, petrol prices were increased by 9 paise per litre in Delhi, Mumbai, Kolkata and Chennai while the diesel rates were raised by 14-16 paise per litre in the metro cities. With the daily revision, petrol prices were at Rs 74 per litre in Kolkata on Tuesday, Rs 79.15 per litre in Mumbai and Rs 73.89 per litre in Chennai, while diesel prices were at Rs. 64.54 per litre, Rs. 65.9 per litre and Rs. 65.23 per litre respectively.
Global crude prices have risen above $70 per barrel for the first time since 2014 as investors bet supply cuts led by Organization of the Petroleum Exporting Countries or EPEC will dominate the market this year.
Petrol and Diesel prices have been on a rise since December 12, 2017. As per reports, diesel was priced at Rs. 58.34, per litre in Delhi. To recall, diesel prices on October 4, 2017 came down to Rs. 56.89 and petrol to Rs. 68.38 due to excise duty cut. Report state that the government had raised excise duty on petrol and diesel on nine occasions to take away gains arising from plummeting global oil prices between November 2014 and January 2016. In June 2014, state-owned oil companies changed the 15-year old practice of revising rates on 1st and 16th of every month. They adopted a dynamic daily price revision to instantly reflect changes in cost. Since then prices of petrol and diesel are being revised on a daily basis.
(The above story first appeared on LatestLY on Jan 16, 2018 11:09 AM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).