Petrol, diesel prices shoot up in Hyderabad

India's petrol diesel prices rise on May 15 after 19-day freeze by OMCs

State-run oil companies on Tuesday hiked petrol and diesel prices for the second straight day after a 19-day hiatus ahead of the assembly elections.

Petrol prices were hiked by 17 paise a litre and diesel by 21 paise on Monday after a 19-day gap.

The conclusion of Karnataka polls continues to bring crude shock for the common man with the price of petrol and diesel increasing by 15 paise and 22 paise, respectively, in Delhi.

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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.

Though retail petrol and diesel prices in India follow global movement of product prices, any developments on crude oil front also impacts product pricing.

Rising crude oil, coupled with Indian government ruling out excise duty cuts and various states' being reluctant in reducing the Value-Added Tax on fuel prices, has left limited room for OMC to make any relaxation in the price of the product, especially diesel, which is now at a record high.

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The fuel was priced at Rs 75.10 per litre in Delhi, the highest since it hit Rs 76.06 a litre in September 2013. Moreover, the rupee is also down more than 6% against the United States dollar so far this year.

Finance Secretary Hasmukh Adhia and Economic Affairs Secretary Subhash Garg have in the past weeks ruled out any immediate reduction in excise duty to cushion the increases warranted from a spike in worldwide oil price.

Abhishek Bansal, Chairman, ABans Group, a commodity trading company, said that oil is the most basic commodity and any gradual effect of rising prices may have adverse effect on many other commodities and industries.

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