Petrol Price Hiked After 19 Day Pre-Karnataka Poll Hiatus

News World India | 0
| May 14 , 2018 , 11:58 IST

Petrol and diesel prices were hiked on Monday after a 19-day pre-Karnataka poll hiatus, bringing petrol prices in Delhi to a 56 month peak at Rs 74.80 per litre, and diesel prices to a new all-time high at Rs 66.14 a litre.

According to Indian Oil Corp (IOC) chairman Sanjiv Singh, the state-owned firms were “temporarily moderating” prices to avoid sharp spikes and panic among consumers.

The Oil PSUs had themselves absorbed the costs of international spikes in the price of petrol and diesel before they reverted to the process of daily revision in rates on Monday.

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As per estimates, state-owned oil marketing companies have lost around Rs 500 crore for the period that they absorbed the higher costs of petrol and diesel and the fall of the rupee against the US dollar.

Since June last year, Oil PSUs in India launched the protocol of regulation of auto fuel prices on a daily basis as compared to the fortnightly adjustment in prices which was followed earlier.

The withdrawal of the US from the Iran nuclear agreement and re-imposing sanctions on the oil-producing country is likely to increase the price of oil in India as well, since India is the world's 3rd largest importer of oil, and Iran is India's 3rd largest supplier.

The NDA government has been criticised for the significant and frequent hikes in the prices of petrol and diesel, with several politicians calling for fuel to be included under the Goods and Services Tax (GST) from which it is currently exempt.