Diesel price continues to boil; Soon you may pay Rs 74 in Mumbai, Rs 72 in Kolkata
It needs to be noted that for the Indian government, fuel is a major generator of revenue and that is why authorities have been reluctant to provide relief to consumers.
Compared to petrol, the state-owned Oil Companies decided to increase diesel prices at a much lower rate on Tuesday. In various state capitals, diesel prices were raised in the range of 14 paisa to 15 paisa per litre each. There was a time when diesel prices were stuck in the range of Rs 50 to Rs 60 per litre, but since the start of 2018, there is no stopping the rate hikes in this crucial product. Now, three top metro cities are charging you over Rs 71 per litre, as in Mumbai and Chennai the rates are higher than Rs 73 per litre, while Kolkata is just marginally away from joining the club of Rs 72 per litre.
These are the levels no one has ever witnessed. It needs to be noted that for the Indian government, fuel is a major generator of revenue and that is why authorities have been reluctant to provide relief.
Today, diesel price in New Delhi was raised to Rs 69.31 per litre, higher by 14 paise compared to previous day's price of Rs 69.17 per litre.
Similarly, diesel price in Kolkata was ruling at Rs 71.72 per litre today, which was up 14 paise against previous day's price of Rs 71.86 per litre. This city would be third to clock over Rs 72 per litre rate after Mumbai and Chennai respectively.
Furthermore, Mumbai and Chennai saw the biggest hikes in diesel prices today.
India's financial hub Mumbai saw hike of 15 paise in diesel price and is now selling at new price of Rs 73.79 per litre as against Rs 73.64 per litre of previous day.
Chennai also entered the Rs 73 per litre club after Mumbai, as the price was hiked by 15 paise available at Rs 73.18 per litre on Monday, compared to previous price of Rs 73.03 per litre.
Moreover, international crude oil prices were mixed in Asian trading on Tuesday, but remained under pressure from expectations that Saudi Arabia and Russia would pump more crude to ease a potential shortfall in supply.
Therefore, Brent crude futures were up 31 cents, or 0.41 percent, at $75.61 a barrel at 0213 GMT, after settling at their lowest since May 8 at $75.30.
U.S. West Texas Intermediate (WTI) crude was down $1.05, or 1.55 percent, at $66.83 a barrel, sitting around its lowest since April 17.
It needs to be noted that, the OMCs have started hiking petrol prices from May 14 onward, for the first time since April 24 after the conclusion of the Karnataka election voting.
Therefore, from May 14 till today, diesel prices have risen by Rs 3.38 per litre each in New Delhi and Rs 3.23 per litre in Kolkata. Whereas, Mumbai and Chennai saw the most hikes - by as much as Rs 3.59 per litre and Rs 3.62 per litre respectively.