Petrol price hike: Petrol and diesel prices continued to move up and hit a fresh record high on Friday. Raised for the 12th consecutive day, petrol prices shot up by 36 paise in Mumbai to Rs 85.65 per litre in Mumbai. Meanwhile, diesel prices were hiked by 24 paise to Rs 73.20 per litre in Mumbai. In the national capital Delhi, petrol prices were hiked by 36 paise to Rs 77.83 per litre and diesel by 22 paise to Rs 68.75 per litre. Petrol prices have been on the boil since the end of Karnataka elections and have risen by more than Rs 11.02 while diesel has risen by Rs 7.27 in the past 12 days in Mumbai. According to IOC’s website, petrol prices in Kolkata were seen to be at Rs 80.47. In Chennai, one litre of petrol retailed at Rs 80.80 on May 25th, according to the company’s website. Diesel retailed at Rs 71.3 in Kolkata and Rs 72.58 in Chennai.
While prices in India were hiked on Friday, oil prices globally eased on Friday as Russia hinted it may gradually increase output, after having withheld supplies in concert with producer cartel OPEC since 2017. Notably, brent crude futures were at $78.69 per barrel at 0208 GMT, down 10 cents from their last close, and more than 2.2 percent below the $80.50 November 2014 high they reached on May 17, according to a Reuters report.
To check the fuel prices, the government is mulling various steps as including asking oil major ONGC to share a part of burden “The Ministry plans to direct ONGC to sell its crude oil at below ruling international prices by capping the price at, say, $70 for the entire fiscal year. Oil India Ltd (the other national oil producer) will not be a part of this scheme,” a government official told the Indian Express yesterday.
According to the Indian Express report, the government official said that ONGC’s contribution could pare the required price increase in petrol and diesel by one-third with an additional marginal relief provided by reducing the dealers’ commission by 18 paise per litre on diesel and 23 paise per litre on petrol.