Bookmark Kaumudi Online  Bookmark this site  Editor@Kaumudi  |  Marketing  Print Advt rates  |  Calendar 2018        Go!    
 
 
September 21, Friday 2018 4:09 PM       

       HEADLINES: ‘Global Salary Challenge for rebuilding Kerala’, CM seeks help from expats                                              Gas leak after tanker lorry overturns in Malappuram                                              SI transferred for charging case against CPM MLA                                              Harish Vasudevan mocks Kodiyeri                                              Left govt will not try to end protest of nuns, if they try, it should not be allowed: Saradakkutty                                              Hike in petrol price, diesel stagnant                                              Difference in opinion will arise only if party exists: Oommen Chandy                                              India accepts Pakistan PM's proposal for foreign ministers meet                                              Indian economy to reach USD 5 trillion size by 2022: PM                                              PDP hopes PM Modi will reciprocate dialogue offer made by Imran Khan                                              Korean leaders undertake joint excursion to Mt. Paektu                                              Kim, Moon join hands on peak of sacred North Korean volcano                                              Nadeem breaks List A bowling world record with sensational spell                                              Kaumudi Facebook
       BUSINESS Next Article: Sensex opens higher despite weak macro data  
       Petrol, diesel prices hiked after 19-day pre-poll hiatus
 
         Posted on :10:23:34 May 14, 2018
   
A A
       Last edited on:10:23:34 May 14, 2018
         Tags: Petrol, diesel, prices hiked, 19-day hiatus
 

NEW DELHI: After a 19-day pre-Karnataka poll hiatus, petrol price was today hiked by 17 paise a litre and diesel by 21 paise as PSU oil firms began passing on the spike witnessed in international rates to consumers.

Petrol price in Delhi was hiked to Rs. 74.80 per litre from Rs. 74.63 while diesel rates were increased to Rs. 66.14 a litre from Rs. 65.93, according to a price notification issued by state-owned oil marketing companies.

With this, diesel prices have touched a record high while petrol is at a 56-month peak.

Oil PSUs, who had kept rates unchanged for nearly three weeks before Karnataka went to polls despite input cost spiking, reverted to daily revision in prices no sooner had the state voted to elect a new government on Saturday.

State-owned oil marketing companies are estimated to have lost about Rs. 500 crore as they absorbed higher cost resulting from the spike in international oil rates and fall in rupee against the US dollar.

Oil PSUs, which have been since June last year revising auto fuel prices on a daily basis to reflect changes in the cost, have kept pump rates static since April 24, an analysis of daily price notification issued by oil companies showed.

Oil PSUs have refused to acknowledge if the freeze followed a government diktat so as to help ruling BJP in Karnataka.

Indian Oil Corp (IOC) Chairman Sanjiv Singh last week said that the state-owned firms were "temporarily moderating" prices to avoid sharp spikes and panic among consumers.

Petrol and diesel prices were last revised on April 24 when they were hiked by 13 paise each. But prices were frozen thereafter. This despite benchmark international rate for petrol going up from USD 78.84 per barrel, which was used for raising the price to Rs. 74.63 a litre on April 24, to USD 82.98 now, according to sources privy to fuel pricing methodology.

The benchmark international diesel rates during this period have climbed from USD 84.68 per barrel to USD 88.63. Also, the rupee has weakened to Rs. 67 per US dollar from Rs. 66.62, making imports costlier.

Oil Minister Dharmendra Pradhan had last month denied reports of a directive to state oil firms to absorb at least Re. 1 a litre hike by not raising prices in line with cost.

The prices at petrol pumps of state-owned fuel retailers like Indian Oil Corp (IOC) were cut by 1-3 paise every day in the first fortnight of December 2017 before Gujarat went to polls.

They started moving up immediately after polling for assembly elections in Gujarat concluded on December 14, leading to speculation that government may have asked oil companies to hold the prices.

State-owned oil companies in June last year dumped the 15-year old practice of revising rates on 1st and 16th of every month and instead adopted a dynamic daily price revision to instantly reflect changes in cost.

If this practice was followed in letter and spirit, petrol and diesel prices should have been increased by Rs. 1.5 a litre in last 19 days, an analyst tracking the sector said.

The government had in June 2010 freed petrol price from its control and the diesel rates were deregulated in October 2014. Prices have since then moved more or less in tandem with international rates barring a few exceptions like the period before a crucial election.

Finance Secretary Hasmukh Adhia and Economic Affairs Secretary Subhash Garg have in the past weeks ruled out any immediate reduction in excise duty to cushion the increases warranted from a spike in international oil price.

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 cut the tax just once in October last year by Rs. 2 a litre.

The government had between November 2014 and January 2016 raised excise duty on petrol by Rs. 11.77 a litre and that on diesel by Rs. 13.47 per litre to take away gains arising from plummeting global oil prices. This led to its excise mop up more than doubling to Rs. 2,42,000 crore in 2016-17 from Rs. 99,000 crore in 2014-15.

The central government had cut excise duty by Rs. 2 per litre in October 2017, when petrol price reached Rs. 70.88 per litre in Delhi and diesel Rs. 59.14. Because of the reduction in excise duty, diesel prices had on October 4, 2017, come down to Rs. 56.89 per litre and petrol to Rs. 68.38 per litre.

However, a global rally in crude prices pushed domestic fuel prices far higher than those levels.

A A
       BUSINESS
Next Article: Sensex opens higher despite weak macro data
 
 
BUSINESS HEADLINES
Avis India announces free doorstep delivery, collection of self-drive cars  
Dena Bank surges 20%; BoB tumbles 14% post merger announcement  
Vijaya Bank, Dena Bank, BoB to merge: Govt  
Mother Dairy won't cut prices despite Patanjali's cheaper cow milk  
Union Bank of India exits Antwerp diamond market  
Naidu discusses bilateral cooperation in trade and defence with Serbian President  
FundzBazar crosses 2 lakh investors milestone  
Ramdev Baba’s Patanjali launches cow milk, french fries and more  
United Bank of India increases MCLR by five basis points  
RBI submitted a list of high profile fraud cases to PMO: Rajan  
Chemists call for strike on Sep28 against online medicine sale  
Rupee sinks to new low of 72.91, drops 22 paise against USD  
Skills and You develops special module 'Curio'  
Google ready to comply with RBI norms for payment services, says official  
FinMin in touch with RBI for market intervention to contain rupee value  
Sensex plunges over 400 pts as rupee breaches 72.50 mark  
Niti Aayog asks auto cos to stick to timeline to achieve full e-mobility  
FastFox registers 3x growth post rollout of revolutionary 'Open House' model  
Jio completes two years, aims to take India to 'top 5' in broadband connectivity  
Gold rises 0.46% on positive global cues  
Rupee pares gains, slips 7 paise against US dollar  
Bajaj Finserv rolls out exciting offers, lowest EMIs on all products  
Gadkari pitches for alternate fuels; says govt not against petrol, diesel  
US dollar ends higher against rupee  
Sensex drops 140 pts as rupee hits new low  
 
Do you think the police are delaying the arrest of Bishop Franco due to Vatican Pope's interference?
yes
 
no
 
don't know
 
 
 
Home Kerala India World Business Sports Sci&Tech Education Automobile CityNews Movies Environment Letters 
© Copyright keralakaumudi Online 2011  |  Reproduction in whole or in part without written permission is prohibited.
Head Office Address: Kaumudi Buildings, Pettah P.O, Trivandrum - 695024, India.
Online queries talk to Deepu Sasidharan, + 91 98472 38959 or Email deepu[at]kaumudi.com
Customer Service -Advertisement Disclaimer Statement   |  Copyright Policy