An employee fills a customer’s motorbike’s tank with gas at a Reliance petrol Station in Hapur, India (Photographer: Amit Bhargava/Bloomberg News.)

Petrol, Diesel Prices Hiked For Fifteenth Day Despite Drop In Crude Price

The woes of consumers dealing with record high fuel prices continued as state-run oil marketers increased petrol and diesel prices for 15 days in a row, despite a decline in crude oil rates.

The price of petrol was hiked by 15 paise today to Rs 86.08 a litre in Mumbai, while diesel was raised by 11 paise to Rs 73.64 a litre, according to data released by Indian Oil Corporation Ltd. Petrol and diesel are costlier by Rs 3.43 a litre and Rs 3.21 a litre, respectively, since May 14, when oil marketing companies resumed daily price revisions after a 19-day freeze in the run-up to the Karnataka elections.

Also read: Windfall Tax On ONGC In Offing To Soften Petrol, Diesel Prices

Crude Cools

The rally in oil prices that took Brent crude to the $80-mark for the first time since 2014 stalled last week after Saudi Arabia and Russia proposed easing output curbs after eliminating an inventory surplus that had sparked the biggest price crash in a generation. Brent crude fell for the third straight session and traded two percent lower at $74.91 per barrel today as of 8:40 a.m.

Government Mulls Policy For Long-Term Solution

The central and state governments are working with oil marketers to formulate a policy to curb fuel price rise, Finance Minister Piyush Goyal said in a press conference on Friday.

The policy will aim for the long-term stability of petrol and diesel prices to ease consumer burden, said Goyal. The Goods and Services Tax Council is expected to discuss bringing petrol and diesel under the indirect tax regime in its next meeting, he added.

Also read: Government Rules Out Excise Duty Cut To Cushion Petrol Prices