Diesel prices hit a record-high

New Delhi: Diesel prices have risen to a record high following twelve successive rate hikes in as many days by state oil companies.

State oil companies raised prices of diesel and petrol by 64 paise and 53 paise per litre, respectively, on Thursday. With twelve straight hikes, the rates of diesel and petrol have gone up by a total of Rs 7.04 and Rs 6.55 per litre, respectively.

Domestic fuel prices are setting new records at a time international rates of fuels are subdued. Crude oil is trading around $40 a barrel, up from $20 a barrel in late April, but much lower than $66 a barrel at the beginning of the year.

Increased taxes by the central and state governments as well as oil companies’ expanded marketing margins have contributed to recent fuel price inflation. Companies are expected to follow the international market trend to determine domestic fuel prices, but they often deviate. Which is why Indian consumers have barely benefitted from the recent oil collapse.

With inputs from The Economic Times