Published: Thu, May 17, 2018
Medicine | By Brett Sutton

High oil price to pinch a hole in your pocket. Here's why

High oil price to pinch a hole in your pocket. Here's why

According to a PTI report, oil marketing companies like IOC, BPCL and HPCL may hike pertol and diesel prices by almost Rs 4 a litre to maintain their marketing margin at previous levels of Rs 2.70 a litre.

(IOC) raised the price of petrol by 15 paise a litre and diesel by 23 paise a litre on Tuesday. The prices of both petrol and diesel have been on a rise over the last three days. Diesel prices have gone up by 86 paisa a litre, including 22 paisa increase on Thursday that took the rate to their highest-ever of Rs66.79 a litre in Delhi.

The previous prices recorded in these cities was Rs 78.03 (Kolkata, August 2014), Rs 83.62 (Mumbai, September 2013) and Rs 79.55 (Chennai, September 2013), according to IANS.

The daily increase in petrol and diesel prices is expected to continue for some more time as global oil prices are on boil with benchmark Brent crude price settling a new four-year high of $78.94 a barrel on Tuesday.

While the rising prices are causing many drivers to feel the strain, it is also encouraging a shift in motorists switching to alternative, greener fuels.

He further said that the prices of the cooking gas (LPG) and civil aviation fuel have remained static at Rs 1,375 per cylinder and Rs 95 per litre respectively.

With the USA reimposing sanctions on Iran, global oil prices are unlikely to come down any time soon. The situation is no different in other parts of the country.

Though retail petrol and diesel prices in India follow global movement of product prices, any developments on crude oil front also impacts product pricing. At BPCL outlets, petrol was priced Rs. 79.35 and diesel Rs. 72.09. In the past, marketing margins have turned negative in the run-up to state elections in 2015 and 2017, though crude prices then had not risen much as compared to the current surge.

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