Petrol price soars close to Rs 75 a litre in Delhi

The Rs4 per litre petrol hike is based on the assumption that global prices of diesel and petrol and rupee-dollar exchange rate remain stable hereon

Nepal Oil Corporation has hiked Rs 2 per litre in petrol, diesel, kerosene effective from Wednesday midnight, official at the NOC said.

According to the new revised rate, the petrol will cost Rs 110 per litre and diesel and kerosene will cost Rs 92. In some cities, diesel prices have touched a record high while that of petrol are at a 56-month peak.

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In the other metropolitan cities of Kolkata, Mumbai and Chennai also, petrol prices were at fresh multi-year high levels of Rs 77.65, Rs 82.79 and Rs 77.77 a litre respectively, data from the International Olympic Committee website showed. In other major cities, petrol prices increased by about 0.2% and diesel prices rose by 0.3%. With crude touching $79.47 a barrel, and the rupee down more than 6 per cent to nearly 68 against the dollar, fuel prices were bound to be affected. "The recent trend of consistent depreciation in Indian rupee against United States dollar, if continued, may further elongate the period or require sharp hikes to bring retail fuel prices at market-determined level" said Bhatia.

The benchmark global diesel rates during this period have climbed from $84.68 per barrel to $88.63.

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The new prices took effect at 6 a.m. on Monday. The oil companies' decision to change the prices came after the polling on May 12 in that State. Indian Oil Corp (IOC) Chairman Sanjiv Singh last week said that the state-owned firms were "temporarily moderating" prices to avoid sharp spikes and panic among consumers.

The NOC, however, has not increased the price of Liquefied Petroleum Gas (LPG). Meanwhile, worldwide crude price settled a shade firmer after retreating from multi-year highs hit early in the day on Tuesday, supported by concerns that US sanctions on Iran are likely to restrict crude exports from one of the biggest producers in the Middle East.

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