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15 May 2018, 10:47 | Darnell Patrick
Petrol prices are now just 1 cent a litre off an all time high at many stations across New Zealand
For almost three weeks Oil companies had kept rates unchanged despite an increase in the input cost. IOCL chairman Sanjiv Singh said that the price hike has been avoided to reduce pain to the consumer.
Oil marketing companies have estimated a loss of about ₹ 500 crore as they absorbed higher cost resulting from the spike in worldwide oil rates and fall in rupee against the USA dollar. After this, the petrol price in Delhi will now cost Rs 74.80 per liter and in Mumbai the cost of petrol is Rs 82.65 per liter. More taxes on petrol and diesel, more burden on the consumer. This trend means that diesel prices have never been higher in the last 56 weeks. Today in various state capital the petrol price was hiked between 17 paisa to 18 paisa per litre, especially in Mumbai, where the price has been near Rs 83 per litre.
"I can only say this that if we talk about the fuel price rise of oil, we have to remember that after deregularisation of fuel prices in 2015 - all companies take a call on whether or not and by how much to hike the prices". The rupee steadily weakening against the dollar only makes matters worse.
Finance Secretary Hasmukh Adhia and Economic Affairs Secretary Subhash Garg have in the past weeks ruled out any immediate reduction in the excise duty to cushion the increases warranted from a spike in global oil price.
In Kisumu, Super petrol will retail at Sh109.11 per liter while diesel and kerosene will cost Sh100.79 and Sh80.12 per litre respectively.
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The oil companies have made a hike in the price of petrol and diesel after an interval of 19 days.
OMC including Hindustan Petroleum Corp Limited (HPCL), Indian Oil Corp (IOCL) and Bharat Petroleum Corp Limited (BPCL), decide the final retail petrol price by taking into consideration the worldwide crude basket, plus states' Value Added Tax (VAT) and the government's excise duty. The markets suffered a total revenue loss of Rs 380 crore in this period, according to an analysis by the Business Standard.
Petrol is most expensive in the northeastern town of Mandera and motorists will pay Sh120.98 a litre, or Sh17.1 more than in Mombasa, while diesel will cost 112.45 a litre.
RAC fuel spokesperson Simon Williams comments: "Prices at the pumps are likely to rise by at least 2p a litre in the next fortnight as a result of the US's decision to pull out of the Iran nuclear agreement".
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