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Published: Thu, May 17, 2018
Medical | By Garry George

Petrol, diesel prices touch new high in two days

Petrol, diesel prices touch new high in two days

"Our computation suggests that downstream oil marketing companies (OMCs) are required to increase retail prices of diesel by a steep Rs3.5-4 a litre and petrol by Rs 4-4.55 per litre in the coming weeks to earn normative gross marketing margins of Rs2.7/litre", Kotak Institutional Equities said in a report.

State-owned oil PSUs hiked petrol prices by 17 paise a litre and that of diesel by 21 paise per litre.

Diesel cars faced the biggest price hike with average cost per litre rose by 1p to 127p per litre. After the revision, a litre of petrol was priced at Rs 74.8 in Delhi, while diesel cost Rs 66.14.

Petrol and diesel prices were raised on Monday after an unofficial 19-day freeze that mysteriously melted no sooner than the Karnataka polls had ended.

Similarly, petrol prices are at Rs 77.79 per litre in Kolkata and Rs 77.93 per litre in Chennai.

In the finance capital Mumbai, the petrol costs Rs 83.16/litre. "At this moment, it's just a speculation and can't be confirmed", said a senior official with the Oil Marketing Companies (OMC)."Any pricing matter is decided by the oil industry pricing group", added the official.

While the rising prices are causing many drivers to feel the strain, it is also encouraging a shift in motorists switching to alternative, greener fuels.

There is, however, some good news for you as after rising consistently crude oil prices fell on Wednesday on reports that there would be ample supply despite a cut in oil production by OPEC countries and USA sanctions against Iran, which is a major crude oil export country. The situation is no different in other parts of the country.

The price hike is based on the assumption that global prices of diesel and petrol and rupee-dollar exchange rate remain stable hereon. Mumbai becomes the most affected city in India when it comes to fuel price hike.

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