Petrol, diesel prices hiked for 2nd day in a row

Petrol and diesel prices on Wednesday were hiked by 80 paise a litre each for the second day in a row since the ending of an over four-and-half month hiatus in rate revision.

Petrol in Delhi will now cost Rs.97.01 per litre as against Rs.96.21 previously while diesel rate has gone up from Rs.87.47 per litre to Rs.88.27, according to a price notification of state fuel retailers.

A record 137-day hiatus in rate revision ended on March 22 with an 80 paise per litre increase in rates. Prices had been on a freeze since November 4 ahead of the assembly elections in states like Uttar Pradesh and Punjab – a period during which the cost of raw material (crude oil) soared by USD 30 per barrel.

Oil companies are now recouping the losses.

According to CRISIL Research, a hike of Rs.15-20 per litre is required to fully pass the increase in international oil prices.

India is 85 per cent dependent on imports to meet its oil needs.