Petrol price may rise post Karnataka elections; Check out rate in Delhi, Mumbai, other metros
India gave up on petrol, diesel subsidy and linked prices to the international markets in hope that consumers will benefit as crude oil prices were trading at a third of their lifetime highs.
Petrol price in India today: Things are getting intense with the continuous rise in international crude oil prices, and state-owned Oil companies having kept rates unchanged for more than two weeks now in various state capitals. It is believed Indian citizens may see a revision in prices after the Karnataka poll is over, which is scheduled for May 12. Indian OMCs have disposed of the daily revision in fuel prices that was being carried out from June 2017. The idea of daily revision was to link it with continuous change in global crude oil price, however, that is currently not on the table as the price has soared to over $76 per barrel mark which is highest since 2014 and no intervention from OMCs has been forthcoming.
Meanwhile on Wednesday, global crude oil prices rose more than 2 percent with Brent hitting a 3-1/2-year high, after U.S. President Donald Trump abandoned a nuclear deal with Iran, likely curbing the OPEC member`s crude exports in an already tight market.
OMC including Hindustan Petroleum Corp Limited (HPCL), Indian Oil Corp (IOCL) and Bharat Petroleum Corp Limited (BPCL), decide the final retail petrol price by taking into consideration the international crude basket, plus states’ Value Added Tax (VAT) and the government's excise duty.
The government had asked OMCs to absorb Rs 1 per litre hike in their basket, but the companies have limited room for reduction in prices of fuel products.
It needs to be noted that the government has ruled out the excise duty cut option on fuel, and the states too are reluctant in trimming down the Value Added Tax (VAT) levied on these products.
In the light of above factors, India gave up on petrol, diesel subsidy and linked prices to the international markets in hope that consumers will benefit as crude oil prices are trading at a third of their lifetime highs.
Now one can only expect any change the Karnataka poll outcome. From the above factors, chances of relaxation in petrol prices is unlikely currently, however, with upside in global crude one can expect further rise in the product.
Check petrol prices in various cities today
Petrol price in New Delhi today: The petrol price here stood at Rs 74.63 per litre unchanged from previous day. The petrol price in the national capital is at six-year high. It is already near Rs 75 per litre mark.
Petrol price in Kolkata today: While in Kolkata, petrol price stood at Rs 77.32 per litre. Over Rs 77 per litre mark was last witnessed in May 2012.
Petrol price in Mumbai today: Petrol has remained four-year high in this city since start of 2018, and Monday was the same, as the price stood at Rs 82.48 per litre same as on the previous day. The near Rs 82 per litre-mark here was last seen in March 2014.
Petrol price in Chennai today: The petrol price here stood at Rs 77.43 paisa similar versus previous day prices. The price of this product touched Rs 77 per litre mark which was last seen in May 2012.
Petrol price in other state capitals today: Petrol prices in Bangalore stood at Rs 75.82 per litre, in Bhopal at Rs 80.18 per litre, Bhubaneswar at Rs 73.46 per litre, Chandigarh at Rs 71.77 per litre, Dehradun at Rs 76.33 per litre, Gandhinagar at Rs 73.94 per litre, Hyderabad at Rs 79.04 per litre, Jaipur at Rs 77.32 per litre, Lucknow at Rs 75.83 per litre, Patna at Rs 80.13 per litre, Raipur at Rs 75.06 per litre and Srinagar at Rs 79.00 per litre.
Moreover, Brent crude oil futures rose to a session high of $76.75 per barrel, their highest since November 2014. They were still at $76.73 per barrel at 0344 GMT, up $1.88, or 2.5 percent, from their last close. U.S. West Texas Intermediate (WTI) crude futures were up $1.61 per barrel, or 2.3 percent, at $70.67 a barrel, close to highs also last seen in late 2014.
According to Reuters report, in China, the biggest single buyer of Iranian oil, Shanghai crude futures hit their highest in dollar terms since they were launched in late May, at around $73.25 per barrel.
Till the time we don't see easing in international crude oil, our petrol price hike dilemma continues.