Petrol and diesel prices today were hiked in the range of 19-31 paise per litre across Delhi, Kolkata, Mumbai and Chennai, marking the eleventh straight day of hikes in the prices of petrol and diesel. Domestic petrol and diesel prices are determined broadly by crude oil price in the international market and the rupee-dollar exchange rate. The continuous increase in domestic petrol and diesel prices is attributable to the rally in crude oil in past few weeks, coupled with weakening of the rupee against the US dollar, say analysts. The government has indicated a likely intervention in the coming days to curb the soaring petrol and diesel rates.
Here are five things to know about petrol and diesel prices today:
1. With effect from 6 am on Thursday, May 24, petrol prices were at Rs. 77.47 per litre in Delhi, Rs. 80.12 per litre in Kolkata, Rs. 85.29 per litre in Mumbai and Rs. 80.42 per litre in Chennai, according to Indian Oil Corporation. Diesel prices, according to the country’s largest fuel retailer, were at Rs. 68.53 per litre in Delhi, Rs. 71.08 per litre in Kolkata, Rs. 72.96 per litre in Mumbai and Rs. 72.35 per litre in Chennai.
2. Thursday’s increase included, petrol prices have been raised by Rs. 2.84 per litre in Delhi, Rs.2.8 per litre in Kolkata, Rs. 2.81 per litre in Mumbai and Rs. 2.99 per litre in Chennai in 11 days, data shows. Diesel prices have been increased by Rs. 2.6 per litre, Rs. 2.45 per litre, Rs. 2.76 per litre and Rs. 2.79 per litre respectively.
|Petrol price (in Rs. per litre)||Diesel price (in Rs. per litre)|
3. Bharatiya Janata Party (BJP) chief Amit Shah had said on Tuesday that the government would come up with a solution in three-four days to keep a check on increasing fuel prices in the country. “We are taking increase in fuel prices very seriously… oil prices have increased according to a set formula. We are working on the situation at the highest level. Our people in the government will come up with a solution in three-four days,” he had said.
4. Currently, petrol and diesel prices are at all-time highs in Delhi, Mumbai and Chennai. Petrol and diesel prices vary from state to state depending on local sales tax or VAT (value added tax). Fuel rates are not under GST. The government had said last month that petroleum products should be brought under GST so that consumers can get the benefit of price rationalisation.
5. Crude oil-rupee: Crude oil prices in the international market dipped today on expectations that OPEC members will step up production in the face of worries over supply from both Venezuela and Iran. OPEC and some non-OPEC major oil producers are scheduled to meet in Vienna on June 22. Prices however were not far from their 2014 highs. Meanwhile, the rupee closed at an 18-month low against the US dollar on Wednesday.