Petrol, diesel prices touch new high in two days

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Oil prices for June delivery was trading lower by a similar margin at Rs 4,846 per barrel with a business volume of 266 lots.

Petrol and diesel prices had been hiked again for a second day in a row.

Diesel price in New Delhi: Diesel price in the national capital over Rs 66 per litre-mark for the first time, as the product was available at Rs 66.57 up by 21 paisa compared to previous price of Rs 65.36 per litre.

As per IOCL's website, the price of petrol was at Rs 75.10 in Delhi, Rs 77.79 in Kolkata, Rs 82.94 in Mumbai, Rs 77.93 in Chennai and Rs 76.31 in Bengaluru. According to experts the three oil marketing companies - Indian Oil Corp, Bharat Petroleum Corp Ltd and Hindustan Petroleum Corp Ltd- together suffered losses of around Rs 1,500-1,700 crore due to the steep rise in prices.

"With the Karnataka elections now over, prices have started to rise like it did in after Gujarat in Dec 17 although a full normalization would still require prices to rise another Rs 4.2 per litre or by 6 per cent", Equity research firm Jefferies said in a report.

Analysts estimate the three OMCs - Indian Oil Corp, Bharat Petroleum Corp Ltd and Hindustan Petroleum Corp Ltd - took a combined hit of over Rs 1,500-1,700 crore since the start of April, when the prices marginally higher despite a steep rise in global oil prices. An analysis of historical fuel price changes by Indian Oil (IOC) shows the company had kept the prices static between 16 January 2017 and 1 April 2017, when the company followed fortnightly revision of fuel prices.

The hike is all set to burn a bigger hole in commuters' pockets across the nation, as petrol will now cost Rs 77.79 in Kolkata, Rs 82.94 in Mumbai and Rs 77.93 in Chennai.

The price of fuel is expected to skyrocket past R15 per litre. Diesel price has also hit its all time high since abolition of LBT here. In other major cities, petrol prices increased by about 0.2% and diesel prices rose by 0.3%.

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