Petrol, diesel prices hiked by 80 paise for the third time this week

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    Petrol and diesel prices were hiked on Friday yet again by 80 paise a litre. This is the third time in the week that petrol and diesel prices went up — witnessing an overall increase of Rs 2.4 per litre, after a four-month hiatus.

    After today’s hike, petrol in Delhi will now cost Rs 97.81 per litre as against Rs 97.01 previously on Wednesday, while diesel rates have gone up from Rs 88.27 per litre to Rs 89.07, according to a price notification of Rajdhani service station, state-owned fuel retailers.

    In Mumbai, petrol price has reached Rs 112.51 per litre, from Rs 111.67 per litre on Wednesday, after a hike of 85 paise.

    While the diesel price has surged from Rs 95.85 per litre to Rs 96.70 per litre within two days, according to a notification by state- owned fuel retailer.

    Chennai saw a 76-paise increase in retail fuel prices, taking the cost of petrol and diesel to Rs 103.67 and Rs 93.71 respectively. In Kolkata, the price of petrol is at Rs 106.34 (increased by 84 paise) and diesel is Rs 91.42 (increased by 80 paise).

    Petrol and diesel prices vary from state-to-state based on factors like international crude oil prices, value-added tax (VAT) levied on fuel across different states, freight charges and international exchange rate. State-backed oil marketing companies (OMCs) revise petrol and diesel prices on a daily basis at 6 am.

    Experts say that the third day of fuel price hike in the same week raises alarming concerns of stoking inflation, which is already above the targeted 6 per cent.

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    Besides, Moody’s recent Investors Services said that state-owned Indian Oil Corporation (IOC), Bharat Petroleum Corporation and Hindustan Petroleum Corporation (HPCL) together lost around Rs 19,000 crore in revenue for keeping the prices on hold.

    “Based on current market prices, the oil marketing companies are currently incurring a revenue loss of around USD 25 (over Rs 1,900) per barrel and USD 24 per barrel on sale of petrol and diesel, respectively,” Moody’s said in a report.