Petrol, diesel prices rise as Karnataka elections end
14 May 2018
Petrol price were hiked on Monday by 17 paise a litre and diesel by 21 paise as state-owned oil marketing companies (OMC) have resumed passing on the rise in global crude prices to consumers.
Prices had been been kept on hold for almost three weeks from 24 April, which commentators attributed to the impending Karnataka state elections that were held on Saturday.
Petrol price in Delhi was are now Rs74.80 per litre, while diesel rates increased to Rs66.14 a litre, said a price notification by state-owned oil marketing companies.
OMCs, which had kept rates unchanged for nearly three weeks before Karnataka went to polls despite a rise in global oil prices, reverted to a daily revision in prices soon after the elections.
With this, diesel prices have touched a record high while petrol is at a 56-month peak.
The public sector OMCs are estimated to have lost about Rs500 crore from bearing higher cost resulting from the firming up of global crude prices coupled with a fall in the rupee against the dollar.
Since June last year petrol and diesel prices prices have been revised daily in line with international prices. till then for the last 15 years they were being revised fortnightly on the 1st and 16th of every month.
The benchmark international rate for petrol has risen from $78.84 per barrel, which to $82.98 now, while the benchmark international diesel rates rose from $84.68 per barrel to $88.63 and the rupee weakened to Rs 67 per US dollar from Rs 66.62, making imports costlier, PTI reported.
If daily revisions were followed for the last three weeks, petrol and diesel prices should have risen by Rs1.5 a litre.