This is the second consecutive day when prices have been hiked by the oil companies, signalling resumption of the daily price revision mechanism after a 19-day hiatus that resulted in Rs 400 crore loss for these entities. According to the website of Indian Oil Corporation Limited (IOCL), petrol was retailing at Rs 75.10 after an increase of 15 paise. As per IOCL's website, the price of petrol was at Rs 77.79 in Kolkata; Rs 82.94 in Mumbai; Rs 77.93 in Chennai and Rs 76.31 in Bengaluru.
Diesel prices were increased by 21 paise per litre in Delhi and Kolkata, 22 paise per litre in Mumbai and 23 paise per litre in Chennai. With this, the petrol prices now are at their highest level recorded since September 2013. Diesel prices in Delhi have accordingly moved upwards at Rs 66.57 per litre and Rs 70.88 per litre in Mumbai.
The Automobile Association (AA) said last month's fuel price account was closed earlier by the Department of Energy, resulting in the postponement of a substantial 50 cent-per-litre increase brought on by a weakening rand and rising worldwide oil prices at the end of April.
Meanwhile, Diesel will now cost Rs 66.57 in New Delhi, Rs 69.11 in Kolkata, Rs 70.88 in Mumbai and Rs 70.25 in Chennai. "As the crude oil prices were constantly moving up, its impact on diesel and petrol prices should have been reflected in the country".
Oil PSUs kept retail prices unchanged for almost three weeks before Karnataka elections in spite of the surge in worldwide fuel prices and Rupee's depreciation. Oil PSUs that had kept rates unchanged for almost three weeks before Karnataka polls despite a spike in input cost, reverted to daily revision in prices as soon as the state voted to elect a new government on Saturday.
Oil prices for June delivery was trading lower by a similar margin at Rs 4,846 per barrel with a business volume of 266 lots.
Analysts said the fall in crude oil futures was mostly in tune with a weak trend in the global markets and profit-booking by speculators. Adding to the woes, the government has also denied reducing excise duty prices, thus taking a bigger hit on the public.