Petrol, Diesel Prices Raised Again, Up Over Rs 2 Per Litre In 9 Days

Petrol and diesel prices have been raised for the ninth straight day across the country, just days after the government promised a solution. These nine hikes came after a 19-day hiatus when prices were kept unchanged for the May 12 Karnataka election. Petrol prices have been increased by Rs. 2.24 a litre in Delhi, Rs. 2.21 in Kolkata, Rs. 2.22 in Mumbai and Rs. 2.36 a litre in Chennai over the past nine days, data from Indian Oil Corporation shows. Diesel prices have been raised by Rs. 2.15 a litre, Rs. 2, Rs. 2.28 and Rs. 2.31 in Delhi, Kolkata, Mumbai and Chennai respectively.

Here are 10 things to know about petrol and diesel prices today:

1. On Tuesday, petrol prices were hiked in the range of 29-32 paise per litre across Delhi, Kolkata, Mumbai and Chennai, while diesel prices were lifted by 26-28 paise per litre, compared to the previous day.

2. With effect from 6 am, Tuesday, a litre of petrol was sold at Rs 76.87 in Delhi, Rs 79.53 in Kolkata, Rs 84.7 in Mumbai and Rs 79.79 in Chennai, according to Indian Oil. Diesel was sold at Rs 68.08 per litre in Delhi, Rs 70.63 per litre in Kolkata, Rs 72.48 per litre in Mumbai and Rs 71.87 per litre in Chennai.

3. So far this year, petrol prices have shot up in the range of Rs 6.81-7.26 per litre across the four metros, while the increase in diesel prices has been in the tune of Rs 8.33-9.21 per litre in the wake of rising global crude prices.

4. Soaring crude oil prices in the past few months, coupled with weakness in the rupee against the US dollar, has led to petrol and diesel prices hitting all-time highs in Delhi and Mumbai.

5. Ongoing production cuts led by the Organization of the Petroleum Exporting Countries (OPEC) pushed crude oil prices to their highest level since late-2014.

6. "Crude Oil WTI contract on NYMEX has broken all short term moving average. As it continues to sustain above this level at support levels of $68.25, more upside move is possible towards the next level of resistance around $74.33 in near term and more above this level till $78 in medium term," said Abhishek Bansal, chairman and managing director of ABans Commodities, a commodity broking and financial services company.

7. Brent has broken through $80 per barrel for the first time since November 2014. Also, the rupee has weakened nearly 6 per cent per dollar so far this year.

8. "Recent consolidation (of crude oil prices) between the range of $70.30-$72.20, may see a breakout on close above $72.20...profit booking on higher levels may keep prices under pressure," Mr Bansal added. 

9. With petrol and diesel prices rising to all-time highs in some cities, the government is likely to announce steps to curb the upmove. Facing a "crisis situation" created by rising fuel prices, the government is likely to come out with "some steps" this week to deal with record high petrol and diesel rates, news agency Press Trust of India reported on Tuesday citing a senior official. (Read more)

10. Oil Minister Dharmendra Pradhan had said on Monday that the government was looking at ways to keep rising fuel prices in check. "Various alternatives are being looked at," Mr Pradhan said, adding that he would "work out something soon", news agency Reuters reported.

(With agency inputs)