After petrol and diesel prices remained constant for around 20 days or so since April 24 even when global crude oil prices were on a rally due to Karnataka polls, gradual price rise is seen in the essential fuel products soon after the completion of elections in the state.
On Wednesday, the petrol and diesel prices were increased for the third straight day. In the National capital petrol is being sold at a price of Rs. 75.10 higher by 15 paise while diesel is retailing at Rs. 66.57, with an increase of 2z1 paise against yesterday's price.
As per the website of Indian Oil Corporation, the petrol in Delhi, Kolkata, Mumbai and Chennai was priced at Rs 75.10, Rs. 77.79, Rs. 82.94 and Rs. 76.31 respectively. While diesel quoted at Rs 66.57 in Delhi, Rs 69.11 in Kolkata, Rs 70.88 in Mumbai, Rs 70.25 in Chennai and Rs 67.71 in Bengaluru.
After a static phase of around few weeks in respect of fuel prices, the gradual and constant price rise for both diesel and petrol is emerging to be a serious concern for commuters as well as industries. Nonetheless, PSU companies are hell-bound to increase price of fuel products in the domestic market in line with global crude oil prices which is on a continuous rallying spree.
The situation is expected to worsen in the coming times with the decrease in output by oil producers globally and withdrawal of the Iran deal by the US.
Also, the government is unlikely to intervene with an excise duty cut so as to bring in relief for millions of consumers.
Interestingly, after the surge in crude oil prices globally, diesel prices in India have hit a new high and it may soon be the case for petrol which has already breached multi-year high levels if the trend continues.