New Delhi: Petrol and diesel prices were hiked for straight 14th day on Sunday pushing prices of fuel to a new record high. Petrol prices were hiked by 15 paise per litre and diesel by 16 paise a litre. However, with international prices stabilising further hikes are now likely to be less in coming days.
After a 19-day pre-Karnataka poll hiatus, oil marketing firms have been increasing petrol and diesel prices everyday since May 14. Petrol price has been hiked by Rs 3.49 per litre since May 14 and diesel by Rs 3.13 a litre.
In Delhi petrol now cost record Rs 78.12 a litre, Mumbai Rs 85.93 per litre, Chennai Rs 81.11 a litre and Kolkata Rs 80.76 per litre.
In states, petrol cost Rs 82.76 a litre in Hyderabad and in Bangalore Rs 79.40 a litre.
As petrol and diesel are left outside GST, their prices and quantum of increase vary from state to state depending upon local taxes.
Diesel too hit a new lifetime high with prices in Delhi touching Rs 69.06 a litre, Kolkata Rs 71.61 per litre, Mumbai Rs 73.53 a litre and in Chennai Rs 72.91 per litre.
Among states, diesel in Bangalore cost Rs 70.25 a litre. Diesel is the costliest in Hyderabad were it is priced Rs 75.07 per litre due to high local taxes.
Increase in petrol and diesel is likely to increase inflation as it make transportation of goods and other services costlier.
It could also force the Reserve Bank of India to hike interest rates if inflation remained high.
Crude oil prices are likely to remain elevated at $75 per barrel in FY19, on the back of production cuts by Opec, sluggish response of shale and continuing gradual global growth recovery, said a Yes Bank report last week. Due to this India is now expected to grow by 7.3 per cent in 2018-19 against earlier forecast of 7.5 per cent, it said.