Has rate hike dilemma ended? Petrol prices in Delhi, Kolkata, Chennai stay at peaks for 7th day
Since the government has asked OMCs to absorb Rs 1 per litre hike in their basket, the companies have limited room for reduction in prices of fuel products.
Petrol price in India today: The state-owned oil companies decided to keep rates of petrol price unchanged for seventh consecutive day in various state capitals in India. The OMCs have kept petrol price unchanged on Monday despite international crude oil prices edged lower as a rising rig count in the United States pointed to higher production, but prices held near more than three-year highs and were on track to rise for a second consecutive month.
The oil companies like Hindustan Petroleum Corp Limited (HPCL), Indian Oil Corp (IOCL) and Bharat Petroleum Corp Limited (BPCL) decide the final retail petrol price by taking into consideration the international crude basket, plus states’ Value Added Tax (VAT) and the government's excise duty.
However, looking at the trend of past seven days, question arises whether the rate hike trend in petrol prices has ended. Since the government had asked OMCs to absorb Rs 1 per litre hike in their basket, the companies have limited room for reduction in prices of fuel products.
It needs to be noted that government has ruled out the excise duty cut option on fuel, whereas states have been reluctant in trimming down the Value Added Tax (VAT) levied on these products.
Petrol price in New Delhi today: The petrol price here stood at Rs 74.63 per litre unchanged from previous day. The petrol price in New Delhi is at six-year high.
Petrol price in Kolkata today: While in Kolkata, petrol price stood at Rs 77.32 per litre. Over Rs 77 per litre mark was last witnessed in May 2012.
Petrol price in Mumbai today: Petrol has remained four-year high in this city since start of 2018, and Monday was the same, as the price stood at Rs 82.48 per litre same as on previous day. The near Rs 82 per litre-mark here was last seen in March 2014.
Petrol price in Chennai today: The petrol price here was priced at Rs 77.43 paisa similar versus previous day prices. The price in Chennai has touched Rs 77 per litre mark which was last seen in May 2012.
Petrol price in other state capitals today: Petrol prices in Bangalore stood at Rs 75.82 per litre, in Bhopal at Rs 80.18 per litre, Bhubaneswar at Rs 73.46 per litre, Chandigarh at Rs 71.77 per litre, Dehradun at Rs 76.33 per litre, Gandhinagar at Rs 73.94 per litre, Hyderabad at Rs 79.04 per litre, Jaipur at Rs 77.32 per litre, Lucknow at Rs 75.83 per litre, Patna at Rs 80.13 per litre, Raipur at Rs 75.06 per litre and Srinagar at Rs 79.00 per litre.
Moreover, Brent crude futures, the international benchmark, dipped 39 cents, or 0.5 percent, to $74.25 a barrel at 0305 GMT. Prices climbed as high as $75.47 last week, levels not seen since November, 2014. US West Texas Intermediate (WTI) crude futures were at $67.89 a barrel, down 21 cents, or about 0.3 percent, from their last settlement.
According to Reuters report, the oil complex has been driven by supply concerns amid prospects of the United States reimposing sanctions on Iran, while OPEC-led producers continue to withhold supplies.
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