Diesel, petrol prices hit all-time high
Diesel price has soared in many cities due to rise in crude oil prices in global markets, as a result of this India's oil import bill and inflation. Diesel prices have soared to a record in many cities while petrol is at three-year high as international crude prices hover around 70 dollars per barrel.
According to Indian Oil Corp. Ltd., diesel price touched Rs 61.74 a litre in Delhi, while petrol hit Rs 71.18 a litre, the highest since 1 August 2014. Diesel was sold for Rs 64.40 in Kolkata, Rs 65.74 in Mumbai and Rs 65.08 in Chennai.
Petrol prices in Delhi and Chennai are highest since August 2014 while they are highest since July 2015 in Kolkata, and since October 2017 in Mumbai. Petrol cost Rs 71.18 per litre in Delhi, Rs 73.91 in Kolkata, Rs 79.06 in Mumbai, and Rs 73.80 in Chennai on Monday.
"As falling oil prices helped the government in the last few years, the rising prices can hurt the government. At $70 a barrel, it's still manageable. But if it goes beyond $70 and sustains there, it will be a worry for the government" Economic Times quoted DK Joshi, chief economist at Crisil as saying. "It will have to symmetrically bring down duties as prices go up to prevent broader inflation," Joshi added.
Companies determine retail prices by adding their marketing margin, dealers' commission and government duties to refinery gate prices that are linked to international prices of petrol and diesel.Petrol and diesel prices have been market-determined for the past few years in India.