Diesel price rise by 26p to 28p today; New Delhi rate over Rs 68 per litre, soon pay Rs 72 per litre in Chennai
It needs to be noted that for the Indian government, fuel is a major generator of revenue and that is why the authorities have been reluctant to provide relief.
The uptrend in diesel price continue in India today, as the state-owned Oil Companies have hiked the price of this product in the range of 26 paisa to 28 paisa per litre in various state capital. However, the hike in diesel was at much lower rate compared to petrol price, as the latter raised between 29 paisa to 32 paisa per litre on Tuesday. Diesel prices in India are at levels that have rarely been seen before. Since the start of 2018, there is no stopping the rate hikes of this crucial product. It needs to be noted that for the Indian government, fuel is a major generator of revenue and that is why the authorities have been reluctant to provide relief.
Today, diesel price in New Delhi was at Rs 68.08 per litre, higher by 26 paise compared to previous day's price of Rs 67.82 per litre. This would be first time that the city has earmarked over Rs 68 per litre.
Similarly, diesel price in Kolkata was ruling at Rs 70.63 per litre today, which was up 26 paise against previous day's price of Rs 70.37 per litre. This city would be third to clock Rs 70 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 27 paise in diesel price and is now selling at new price of Rs 72.48 per litre as against Rs 72.21 per litre of previous day. Now you pay over Rs 72 per litre in this city which is most expensive compared to others.
Chennai also saw 28 paise hike in its price to Rs 71.87 per litre on Tuesday, compared to previous price of Rs 71.59 per litre. Considering the trend, you may soon witness Rs 72 per litre mark in this city after Mumbai as well.
Therefore, the above mentioned state capital’s diesel prices are at record high.
Meanwhile on Tuesday, international crude oil prices surged on concerns that Venezuela`s crude output could drop further following a disputed presidential election and potential U.S. sanctions on the OPEC-member.
Following which, brent crude futures were at $79.39 per barrel at 0226 GMT, up 17 cents, or 0.2 percent, from their last close. Brent broke through $80 for the first time since November 2014 last week. U.S. West Texas Intermediate (WTI) crude futures were at $72.47 a barrel, up 23 cents, or 0.3 percent.
It needs to be noted that, the OMCs have started hiking petrol prices from Monday 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 2.15 per litre each in New Delhi and Rs 2 per litre in Kolkata. Whereas, Mumbai and Chennai saw the most hikes - by as much as Rs 2.28 per litre and Rs 2.31 per litre respectively.
Get Latest Business News, Stock Market Updates and Videos; Check your tax outgo through Income Tax Calculator and save money through our Personal Finance coverage. Check Business Breaking News Live on Zee Business Twitter and Facebook. Subscribe on YouTube.