Rs 4 a litre hike in petrol, diesel prices in offing


New Delhi, May 17 (PTI): A Rs 4 per litre increase in petrol and diesel prices is in the offing if state-owned fuel retailers are to return to pre-Karnataka poll hiatus margin levels, brokerage firms said.

No sooner had Karnataka polled to elect a new state government, state-owned Indian Oil Corp (IOC), Hindustan Petroleum Corp Ltd (HPCL) and Bharat Petroleum Corp Ltd (BPCL) on Monday ended a 19-day hiatus in revising petrol and diesel prices and reverted to the practices of changing rates on a daily basis.

Since then petrol price has risen by 69 paisa a litre, including a 22 paisa hike effected on Thursday that took rate in Delhi to Rs 75.32, the highest in almost five years. Diesel prices have gone up by 86 paisa a litre, including 22 paisa increase today that took the rate to their highest ever of Rs 66.79 a litre in Delhi.

"Our computation suggests that downstream oil marketing companies (OMCs) are required to increase retail prices of diesel by a steep Rs 3.5-4 a litre and gasoline (petrol) by Rs 4-4.55 per litre in the coming weeks to earn normative gross marketing margins of Rs 2.7/litre," Kotak Institutional Equities said in a report.

The increase is based on assumption that global price of diesel and petrol and Rupee-US Dollar exchange rate remain stable hereon.

"We note that the lack of price hikes over the past three weeks, before Karnataka elections amid a sharp increase in global crude/product prices, has resulted in sharp moderation in gross marketing margins to around Rs 0.5-0.7 a liter," it said.

Last week, ICICI Securities had said that auto fuel net marketing margins were weak at Rs 0.31 a litre due to no price hike after April 24. OMCs returned to daily price revision from May 14.

They are estimated to have lost about Rs 500 crore on absorbing higher cost resulting from the spike in international oil rates and fall in rupee against the US dollar.

The benchmark international rate for petrol, used for revising rate on April 24, had gone up from USD 78.84 per barrel to USD 82.98 on May 14. It has further risen to USD 83.30, indicating more daily hikes would be needed to level retail price with cost.

Similarly, benchmark international diesel rates during this period have climbed from USD 84.68 per barrel to USD 88.93. Also, the rupee has weakened to Rs 67.06 per US dollar from Rs 66.62, making imports costlier.

 

  

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Comment on this article

  • SHAAN RAMEEZ, K.C ROAD TALAPDY

    Fri, May 18 2018

    FAIL SLOVE THE PETROL PRICE BJP GOVERMENT ONLY IN .INDIA PETROL PRICE GOING TO HIKE DAY BY DAY ..COMPARE OTHER COUNTRY PETROL PRICE .MODI TOLD I WILL GIVE U PETROL 35.BEFORE PM .NOW HE SILENT
    THIS IS ACHE DIN ..GAS PRICE BEFORE 400..AFTER BJP GOVERMENT COME PRICE WAS 800 .THIS IS ACHE DIN.WORST GOVERMENT

    DisAgree Agree [2] Reply Report Abuse

  • Vincent Rodrigues, Bengaluru/Katapadi

    Fri, May 18 2018

    The development and progress of the present government is only hiking the price of the consumer items and nothing else which is quite contrary to the promices made during election

    DisAgree Agree [6] Reply Report Abuse

  • sri_elder, Karkala

    Fri, May 18 2018

    Intelligent congress had 10 years time to implement gst and bring petrol under gst..

    Shockingly they were sleeping for 10 years!

    DisAgree [19] Agree [1] Reply Report Abuse

  • Abdul, Mangalore

    Fri, May 18 2018

    Yes. Congress wanted to implement the GST. But it's BJP opposed the UPA govt from implementing GST. Even they opposed to Adhaar card also. BJP opposed every good move of UPA now they are implementing the same in different names without proper study and is going to become big blunder.
    What so ever enjoy your achche din. Pay more for petrol it's good for economy Of some corporates

    DisAgree Agree Reply Report Abuse

  • Ranga Nayak, Shimoga

    Fri, May 18 2018

    BJP Govt. kay haath may Hindustan ki SATYANASH. More than this I can not tell anything.

    DisAgree Agree [24] Reply Report Abuse

  • Anand Kumar, Mangalore

    Fri, May 18 2018

    Modi, Modi, Modi, Modi......what a progress in the prices sirji?!!!! Never mind! You keep reminding us that we are Hindus and we are the majority, and about minority appeasement of other governments. So its okay. You make us feel patriotic. We want progress! Modi, Modi, Modi, Modi.....

    DisAgree [1] Agree [22] Reply Report Abuse

  • Anand Kumar, Mangalore

    Fri, May 18 2018

    Vote for BJP! New developments everyday! Vote for BJP! They are development, development, development..... of new (higher) costs in different commodities....everyday! What an achievement sirji!

    DisAgree Agree [22] Reply Report Abuse

  • saquib, Byndoor/Dammam

    Fri, May 18 2018

    don't know if it is ache or bure din. we will be kept busy with petty issues and govt will loot us every day in one form or another

    DisAgree Agree [19] Reply Report Abuse

  • Mohammed, Mangalore

    Fri, May 18 2018

    Now days People don't bother if any price increased by government because they want hinduthva government. Let's we pay more money to government and let them pay our money 100cr to purchase MLA. That is people wants.

    DisAgree Agree [20] Reply Report Abuse

  • Anthony Lobo, Mangalore

    Fri, May 18 2018

    BJP repays the election expenses to its donors at the expense of voters. Keep voting BJP. Jai Hind

    DisAgree Agree [13] Reply Report Abuse

  • Alfria, Mumbai/Mangalore

    Fri, May 18 2018

    Petrol will be out of reach from aam adami very soon ache din is coming soon.

    DisAgree Agree [12] Reply Report Abuse

  • Francis lobo, MANGALORE

    Fri, May 18 2018

    Crude oil prices are expected to go up to $100 per barrel as Saudi & Russia cut down their production. So the increase of RS 4/ltr is nothing. RS is expected to reach 70 per dollar. More pain than gain expect for people working in middle East as they will get more exchange rate. Middle East countries are hopeful with this recovery & return of jobs

    DisAgree [2] Agree [4] Reply Report Abuse

  • Nithin Poojary, Mangalore

    Fri, May 18 2018

    Forwarded Message

    4 ವರ್ಷಗಳಲ್ಲಿ ದೇಶ ಬದಲಾಗಿದೆ..
    ಚಹಾ ಮಾರುತ್ತಿದ್ದ ಬಡವ (?)
    ಈಗ ಕುದುರೆ ವ್ಯಾಪಾರಿಯಾದ!

    DisAgree Agree [13] Reply Report Abuse

  • chris, Mangalore

    Fri, May 18 2018

    How come when the International crude price was less the Govt did not decrease the price and now when the price is raising they are giving the same excuses due to International crude oil. India govt is joke and now in Karnataka drama is going on for Seat . The drama will continue for 15 days And whose money these people are staying in resort and all. God only save this country and people. Even next 100 year it wont develop

    DisAgree Agree [7] Reply Report Abuse

  • Steven, Dxb

    Fri, May 18 2018

    Boda sheera Karnataka ? Who chants Modi Modi now enjoy sheera

    DisAgree Agree [8] Reply Report Abuse

  • Avinash, Mangalore

    Thu, May 17 2018

    Sarkara badalaisi, BJP geliisiri. Modi ModiModi Modi Modi. Jai BJP . 😅🤭

    DisAgree [1] Agree [5] Reply Report Abuse

  • Raj, Karkala

    Thu, May 17 2018

    Wow... Hike in petrol price will increase employment and development

    Modi modi modi

    DisAgree [1] Agree [8] Reply Report Abuse

  • Devkumar, Mangalore/New Delhi

    Thu, May 17 2018

    expenditure occured in karnatka election...will incur still expenses upto place our yeddyrupaji...by loctite...with the help.of rebels from opposition.

    DisAgree [1] Agree [5] Reply Report Abuse


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