State-owned oil companies in June last year dumped the 15-year old practice of revising rates on 1st and 16th of every month and instead adopted a dynamic daily price revision, following which fuel prices are revised at 6 am every day.
Diesel price in India today: It's a insane world for Indian fuel prices, as the state-owned OMCs have continued to hike diesel prices to record highs for third consecutive day in various state capitals in India. According to the website of Indian Oil Corporation, petrol price in Delhi is at Rs 75.10 per litre on Wednesday and Rs 82.94 per litre in Mumbai.
Petrol will now cost Rs 75 per litre in Delhi, Rs 77.79 in Kolkata, Rs 82.94 in Mumbai and Rs 77.93 in Chennai.More news: White House dumps 'cyber czar' advisory position
(IOC) raised the price of petrol by 15 paise a litre and diesel by 23 paise a litre on Tuesday.
Oil PSUs kept retail prices unchanged for almost three weeks before Karnataka elections in spite of the surge in global fuel prices and Rupee's depreciation.
Moreover, Brent crude oil settled at $78.43 a barrel, up 20 cents, or 0.3 percent, after reaching an intraday peak of $79.47 a barrel, up $1.24 and its highest since November 2014.More news: Mourners Gather In Liverpool To Pay Final Respects To Alfie Evans
According to market observers, the prices would see significant high during next few days because rising crude oil price in worldwide market and weakening of rupee against USA dollar. Although the rupee recovered a little on Wednesday, it is still not far from 68 against the dollar.
Rising crude oil, coupled with Indian government ruling out excise duty cuts and various states' being reluctant in reducing the Value-Added Tax on fuel prices, has left limited room for OMC to make any relaxation in the price of the product, especially diesel, which is now at a record high. The revisions were altogether stopped on April 25 due to polls in key southern state.
Oil PSUs have refused to acknowledge if the freeze followed a government diktat so as to help the ruling BJP with the polls in Karnataka, where it has been vying to come to power. Though the decision was clearly on government orders, being the largest shareholder, oil companies maintained that the freeze was to "temporarily moderate" prices to avoid sharp spikes and panic among consumers.More news: Europa League was crucial to Atletico revival - Simeone