Cheap petrol: Not a chance! Supermarkets raise fuel prices every day

Cheap petrol: Not a chance! Supermarkets raise fuel prices every day

Petrol prices were hiked by 15 paise per litre and diesel by 16 paise a litre.

Retail fuel prices in India continue to burn a hole in pockets, with the cost of petrol increasing for a 15th consecutive day on Monday to touch a new high of Rs 78.27 a litre in Delhi, up from Rs 78.12 per litre a day before.

The Indraprastha Gas Limited (IGL) announced an increase in the prices of Compressed Natural Gas (CNG) as well, as the CNG price in the national capital was hiked by ₹ 1.36 per kg as input raw material got costlier because of rupee depreciation and rise in natural gas price.

The revisions continued till just before the general elections in 2004 when oil companies went slow and after a Congress-led UPA came to power the entire process was reviewed as the global oil prices started moving up.

Amid the rise in fuel prices, crude oil futures fell 2.73 per cent to Rs 4,485 per barrel on Monday, in line with the weak trend overseas as the market eyed an increase in output from top crude producers - Russia, the United States, and Saudi Arabia.

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He said petrol retailers made just 4c on each litre they sold, with the rest going in taxes.

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. The recent rise in crude oil cost and the high excise duty levied on the particular fuel type is the reason behind the rise in petrol prices in the country. "The Centre is working out a plan to control the increase in fuel prices", he added.

Mr Faughnan said 90c of the cost of a litre of motor fuel was made up of Government taxes. States charge value added tax that varies from state to state. He, however, said the ultimate decision regarding this remained with the Petroleum Ministry.

Petrol and diesel prices were hiked for straight 14th day on Sunday pushing prices of fuel to a new record high.

"Moreover, the government has been pretty clear on pricing and is unlikely to reduce excise, which is one factor why oil marketing companies could continue to underperform", he said.

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