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Petrol, diesel prices hiked by 80 paise a litre each for second day in a row

prices were hiked by 80 paise a litre each for the second day in a row on Wednesday.

Petrol price in Delhi has gone up to Rs 97.01 per litre as against Rs 96.21. Diesel prices has increased from Rs 87.47 per litre to Rs 88.27, according to a price notification of state fuel retailers.

Rates differ from state to state depending on the incidence of local taxes.

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 crude oil soared by $30 per barrel. The rate revision was expected soon after assembly elections ended on March 10 but it was put off.

Experts expect the price hike to continue in the next few days as crude oil prices have increased significantly.

“Consumption demand has decreased because of the already high inflation. The government has been cautious in increasing prices as they realise inflation can reduce demand further,” Likhita Chepa, senior research analyst at CapitalVia Global told TOI.

State-run fuel retailers Indian Oil, Bharat Petroleum and Hindustan Petroleum dominate fuel retailing and tend to move prices together.

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

The price of LPG (liquefied petroleum gas) refills was also raised by Rs 50 on Tuesday, the first increase in six months. LPG prices are currently at record levels.

 

 

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