Fuel prices revised; petrol, diesel to cost more

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98 now, according to sources privy to fuel pricing methodology.

Since June past year, Oil PSUs in India launched the protocol of regulation of auto fuel prices on a daily basis as compared to the fortnightly adjustment in prices which was followed earlier.

By May 11, a day before voting in Karnataka, the prices had increased by 3.7 per cent to about $77.50 per barrel.

However, a global rally in crude prices pushed domestic fuel prices far higher than those levels.

Since the start of this financial year, petrol prices have gone up by Rs 1.24-1.32 per litre across the metro cities.

With today's hike, customers have again shown signs of worry as there may be more increases considering the rising rates of global crude oil prices. The price of this product touched Rs 77 per litre mark which was last seen in May 2012.

The price of petrol has been hiked by 17 paisa per litre, while that of diesel by 23 paisa per litre.

The increase in oil prices comes after several weeks, shattering hopes of a normalisation with regards to rising oil prices.

After a gap of 20 days, the state-run oil marketing companies on Monday revised the prices of petrol and diesel.

Indian Oil Corp (IOC) chairman Sanjiv Singh last week said that the state-owned firms were "temporarily moderating" prices to avoid sharp spikes and panic among consumers.

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 global crude basket, plus states' Value Added Tax (VAT) and the government's excise duty. The prices were kept on freeze starting from April 24, on the back of the Karnataka polls.

Diesel prices on 14 May reached Rs66.14 per litre in Delhi, a record high.

The revenue implications during last duty cut were Rs 13,000 crore during the balance period of current fiscal. 80 per litre from Rs 74.

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