Even drop in crude rates fails to ease diesel prices in India; Now Chennai, Mumbai now charge over Rs 73 each
Many expected the Karnataka poll to bring in some good news over diesel prices, but that possibility did not come to pass.
International crude price is the major component in deriving the rates of diesel prices in India. Any change in Brent crude prices will be reflected in fuel prices as they are highly commodity linked products. But looks like even the drop of crude prices have failed to ease down the hike in diesel prices, as consumers continue to pay record high rates in various state capital of the country. Today, unlike petrol, diesel prices were raised by much lower rate ranging from 11 paisa to 12 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 689.17 per litre, higher by 11 paise compared to previous day's price of Rs 69.06 per litre.
Similarly, diesel price in Kolkata was ruling at Rs 71.72 per litre today, which was up 11 paise against previous day's price of Rs 71.61 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 11 paise in diesel price and is now selling at new price of Rs 73.64 per litre as against Rs 73.53 per litre of previous day.
Chennai also entered the Rs 73 per litre club after Mumbai, as the price was hiked by 12 paise available at Rs 73.03 per litre on Monday, compared to previous price of Rs 72.91 per litre.
OMCs continued to raise diesel prices despite U.S. oil futures hit six-week lows on expectations major producers may ease output curbs on Monday, while Asian stocks and U.S. share futures gained on signs the United States and North Korea were still working towards holding a summit.
Therefore, Brent crude futures slipped as much as 2.6% to $74.49 per barrel, their lowest level in about three weeks. They last stood at $75.00, down 1.8%.
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 3.24 per litre each in New Delhi and Rs 3.09 per litre in Kolkata. Whereas, Mumbai and Chennai saw the most hikes - by as much as Rs 3.44 per litre and Rs 3.47 per litre respectively.