As global crude oil prices reach four-year record levels of almost $80 per barrel, uncomfortable increases in fuel pricing appear inevitable. Diesel prices have risen by 70-93 paise per litre during the same period.
The rise in global oil prices will hit a sore spot for South African motorists as yet another substantial fuel price hike is on the cards for the end of May. Diesel prices, too, were hiked by 22 paise, following which it was retiling at Rs 66.79 in the national capital.
In the finance capital Mumbai, the petrol costs Rs 83.16/litre.
Similarly, petrol prices are at Rs 77.79 per litre in Kolkata and Rs 77.93 per litre in Chennai. In the past, marketing margins have turned negative in the run-up to state elections in 2015 and 2017, though crude prices then had not risen much as compared to the current surge.More news: New YouTube Music streaming service launches gives access to songs unavailable elsewhere
Before Monday, petrol and diesel prices were last revised on April 24 when they were hiked by 13 paise each.
With elections in Karnataka concluding, other states like Mizoram, Chhattisgarh, Madhya Pradesh and Rajasthan are next in line for state legislative assembly elections, before the country gets ready for general elections in 2019. Mumbai becomes the most affected city in India when it comes to fuel price hike. The companies need to catch up on market prices as 19-day price freeze has created a wider gap. The oil prices are now revised everyday at 6 am, after state-owned oil companies chose to do away with the 15-year-old practice of revising fuel prices on the 1st and 16th of every month.
The price of fuel is expected to skyrocket past R15 per litre. The exchange rate of the Indian currency also plays a role in the price hike.