Hike in petrol prices by Rs 2.58 per litre and diesel by Rs 2.26 per litre, with effect from midnight, is sure to pinch consumers' budget.
Petrol prices have been hiked by Rs 2.58 per litre and diesel by Rs 2.26 per litre by Oil marketing companies, with effect in Delhi from midnight. This move is sure to pinch consumers’ budget. With this change, the price of petrol in the national capital will be Rs 65.60 per litre (including state levies), while one litre diesel will cost Rs 53.93. The prices will be revised correspondingly in other states as well.
“The current level of international product prices of petrol and diesel and INR-USD exchange rate warrant increase in price of petrol and diesel, the impact of which is being passed on to the consumers with this price revision,” said Indian Oil Corp (IOC).
The movement of prices in the international oil market and INR-USD exchange rate shall continue to be monitored closely and developing trends of the market will be reflected in future price changes, it added.
In mid May, petrol prices were hiked by 83 paise per litre and diesel by Rs 1.26 per litre. The hike comes at a time when almost global analysts are of the view that crude prices have bottomed out and the price of oil is likely to go up by 2017.
A couple of years into its tenure, the Narendra Modi government seems to be losing the grace of its lucky stars. Benign Brent crude has bountifully helped the government in fiscal management but last Thursday, when the government celebrated its second anniversary, the global benchmark went up 31 cents to go past the $50 per barrel mark, for the first time in 2016. Crossing this level is seen by many analysts as a signal that prices are rising.
Meanwhile, the three consecutive price hikes are likely to add to inflationary pressures in the economy. Consumer price inflation has already accelerated to a stronger-than-expected 5.39 percent in April from 4.83 percent the previous month.
State-owned fuel retailers IOC, Bharat Petroleum Corporation (BPCL) and Hindustan Petroleum Corporation (HPCL) revise rates of the fuel on 1st and 16th of every month based on the average oil price and the foreign exchange rate in the preceding fortnight.