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17 May 2018, 01:01 | Melissa Porter
Pocket pinch: Fuel prices hiked again across India within 19 days
In the third hike in a row after the Karnataka elections ended on Saturday, state-run oil marketing companies raised the prices of petrol and diesel on Wednesday. Diesel prices are at 69.11 in Kolkata and Rs 70.25 in Chennai.
At the BPCL outlets, petrol and diesel were priced at Rs. 79.19 and Rs. 71.85 respectively.
Petrol will now cost Rs 75 per litre in Delhi, Rs 77.79 in Kolkata, Rs 82.94 in Mumbai and Rs 77.93 in Chennai.
G Vinay Kumar, General Secretary of Telangana Petroleum Dealers Association said petrol and diesel prices would keep increasing by 20-30 paise every day until both the Centre and State reduce the taxes. It was sold at Rs 66.36, Rs 68.90, Rs 70.66 and Rs 70.02 per litre in Delhi, Kolkata, Mumbai and Chennai respectively.
Prices of transport fuels, rose for the third consecutive day after the International Olympic Committee resumed the dynamic pricing system on Monday after a 19-day halt.
Fuel prices are determined by two primary factors - global crude oil prices as well as the rupee-dollar forex rate.
"The increase in petrol and diesel prices is on account of price movement of the products in the worldwide market". Moreover, the rupee is also down more than 6% against the USA dollar so far this year. 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.
Abhishek Bansal, Chairman, ABans Group, a commodity trading company, said that oil is the most basic commodity and any gradual effect of rising prices may have adverse effect on many other commodities and industries.
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