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Karnataka polls over; petrol, diesel prices hiked after 19-day hiatus


New Delhi, May 14 (PTI): After a 19-day pre-Karnataka poll hiatus, petrol price was on Monday hiked by 17 paise a litre and diesel by 21 paise as PSU oil firms began passing on the spike witnessed in international rates to consumers.

Petrol price in Delhi was hiked to Rs 74.80 per litre from Rs 74.63 while diesel rates were increased to Rs 66.14 a litre from Rs 65.93, according to a price notification issued by state-owned oil marketing companies.

With this, diesel prices have touched a record high while petrol is at a 56-month peak.

Oil PSUs, who had kept rates unchanged for nearly three weeks before Karnataka went to polls despite input cost spiking, reverted to daily revision in prices no sooner had the state voted to elect a new government on Saturday.

State-owned oil marketing companies are estimated to have lost about Rs 500 crore as they absorbed higher cost resulting from the spike in international oil rates and fall in rupee against the US dollar.

Oil PSUs, which have been since June last year revising auto fuel prices on a daily basis to reflect changes in the cost, have kept pump rates static since April 24, an analysis of daily price notification issued by oil companies showed.

Oil PSUs have refused to acknowledge if the freeze followed a government diktat so as to help ruling BJP in Karnataka.

Indian Oil Corp (IOC) Chairman Sanjiv Singh last week said that the state-owned firms were "temporarily moderating" prices to avoid sharp spikes and panic among consumers.
Petrol and diesel prices were last revised on April 24 when they were hiked by 13 paise each. But prices were frozen thereafter. This despite benchmark international rate for petrol going up from $78.84 per barrel, which was used for raising the price to Rs 74.63 a litre on April 24, to $82.98 now, according to sources privy to fuel pricing methodology.

The benchmark international diesel rates during this period have climbed from $84.68 per barrel to $88.63. Also, the rupee has weakened to Rs 67 per US dollar from Rs 66.62, making imports costlier.

Oil Minister Dharmendra Pradhan had last month denied reports of a directive to state oil firms to absorb at least Re 1 a litre hike by not raising prices in line with cost.

The prices at petrol pumps of state-owned fuel retailers like Indian Oil Corp (IOC) were cut by 1-3 paise every day in the first fortnight of December 2017 before Gujarat went to polls.

They started moving up immediately after polling for assembly elections in Gujarat concluded on December 14, leading to speculation that government may have asked oil companies to hold the prices.

State-owned oil companies in June last year dumped the 15-year old practice of revising rates on 1st and 16th of every month and instead adopted a dynamic daily price revision to instantly reflect changes in cost.

If this practice was followed in letter and spirit, petrol and diesel prices should have been increased by Rs 1.5 a litre in last 19 days, an analyst tracking the sector said.

The government had in June 2010 freed petrol price from its control and the diesel rates were deregulated in October 2014. Prices have since then moved more or less in tandem with international rates barring a few exceptions like the period before a crucial election.

Finance Secretary Hasmukh Adhia and Economic Affairs Secretary Subhash Garg have in the past weeks ruled out any immediate reduction in excise duty to cushion the increases warranted from a spike in international oil price.

The BJP-led government had raised excise duty nine times between November 2014 and January 2016 to shore up finances as global oil prices fell, but then cut the tax just once in October last year by Rs 2 a litre.

The government had between November 2014 and January 2016 raised excise duty on petrol by Rs 11.77 a litre and that on diesel by Rs 13.47 per litre to take away gains arising from plummeting global oil prices. This led to its excise mop up more than doubling to Rs 2,42,000 crore in 2016-17 from Rs 99,000 crore in 2014-15.

The central government had cut excise duty by Rs 2 per litre in October 2017, when petrol price reached Rs 70.88 per litre in Delhi and diesel Rs 59.14. Because of the reduction in excise duty, diesel prices had on October 4, 2017, come down to Rs 56.89 per litre and petrol to Rs 68.38 per litre.

However, a global rally in crude prices pushed domestic fuel prices far higher than those levels.


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Comment on this article

  • dylan, Mangalore

    Tue, May 15 2018

    We should have elections often at every six months. Then the FEKU bhai will not increase the price of petrol/diesel no ache din. Modi as CM opposed GST now Modi as PM welcomed GST. No. 1 chaiwala.......!!!

    DisAgree Agree [1] Reply Report Abuse

  • Myna, Mysuru

    Mon, May 14 2018

    This is the treacherous policies of Mr Modi and Amit Shah. That is the reason the nation doesnt trust them.

    DisAgree Agree [6] Reply Report Abuse

  • The Alpha, Bangalore

    Mon, May 14 2018

    I dont care if the prices increase...I dont care if people die... I will vote for Modi





    - Blind Bhakth

    DisAgree [10] Agree [10] Reply Report Abuse

  • Hindustani, Mangalore

    Mon, May 14 2018

    If this is so called development by our Mr. Modi government then we do not need one. Bhakths are like he is using the additional money for development of India which only they see and none others. Wonder were all the money go. Open ur eyes blind bhakths. Its not too late. Jai Hind.

    DisAgree [1] Agree [19] Reply Report Abuse

  • Akash salian, Mangalore

    Mon, May 14 2018

    Yeddi and reddy will pay to JDS (some Cong)MLA s to support to his govt if they get lead...so there is no money with them. Wait next 2 yrs where yeddi will loot govt treasure then he will think about reduce the petrol fare..

    DisAgree Agree [16] Reply Report Abuse

  • SMR, karkala

    Mon, May 14 2018

    Prices at the OMCs’ petrol pumps were cut by 1-3 paise every day in the first fortnight of December 2017 before Gujarat went to polls.

    They started moving up immediately after polling for assembly elections in Gujarat concluded on December 14, leading to speculation that government may have asked oil companies to hold the prices.

    Now that Karnataka election is out of the way, OMCs might go for a sharp increase in petrol, diesel prices to make up for the losses incurred since April 24.

    Oil Marketing company shifted to daily price revision mechanism last June, from the fortnightly rate change dispensation that was in place earlier.

    While OMCs are free to revise retail pricing of petrol and diesel, price revision was kept on hold, apparently on the petroleum ministry’s diktat.

    The ministry has, however, denied that it has asked OMCs to go slow on the price hike.

    Global oil prices rallied sharply after Donald Trump withdrew the US from the Iran nuclear deal on May 8 and vowed to reimpose sanctions on the Persian Gulf country, fueling concern of shrinkage in crude oil supply.

    India is the largest exporter of Iranian oil pays in Euro is not going to affected for few months. But exports is going to be severely hit if sanctions are tightened and India' s company may face embargo if they continue business in the future.

    India’s petrol, diesel prices are among Southeast Asia’s highest due to high taxes, which make up for nearly 40-45% of the final retail price.

    As the elections to Lok Sabha is just one year away, this may severely jeopardise supply. Indian's may soon ready to pay all time high fuel prices.
    Jai Hind

    DisAgree [1] Agree [14] Reply Report Abuse

  • D.Shetty, Mangalore

    Mon, May 14 2018

    no problem this chillars dont matter....160 rs for beer + vat+ tax etc etc..we enjoy and all cry when 20 ps 50 pc increases on fuel..why not state reduce its subsidy.....good if some is so much concerned dont use private vehicle...for chors and slaves anything happening is issue..
    Jai ho modiji..

    DisAgree [27] Agree [3] Reply Report Abuse

  • Harold D'cunha, Mangalore, India.

    Mon, May 14 2018

    D.Shetty, Mangalore

    Why are you comparing beer price to fuel. I am not drinking beer and majority of the Karnataka state people are not drinking beer. For you, increase in petrol money may not affect you.

    Do not be sarcastic. Honest observation is better than blind bakht attitude.

    DisAgree [1] Agree [9] Reply Report Abuse

  • Aravind, Blr

    Mon, May 14 2018

    Sir, electricity prices are going up too which is done by state government.

    DisAgree [6] Agree [1] Reply Report Abuse

  • Tilak, Blore

    Mon, May 14 2018

    I heard that electricity price is going to increase from today.

    DisAgree [11] Agree [12] Reply Report Abuse

  • Madhukara, Manipal

    Mon, May 14 2018

    You did not heard today petrol, diesel, water, vegitables increased by chaiwalasssssssss

    DisAgree [4] Agree [29] Reply Report Abuse

  • anthony, Mangalore

    Mon, May 14 2018

    This is how the Modi Sarkar is fooling the public of this country.

    DisAgree [4] Agree [43] Reply Report Abuse

  • JNB, Mangalore-Mumbai

    Mon, May 14 2018

    NATION WANTS TO KNOW TODAY!
    Earlier,
    Minakshi Lekhi,
    Arun Jailtly
    Susma Swaraj
    Including other Bhakth were carrying" EMPTY GAS CYLINDERS" and making BIG "ANDHOLANA" where Gas was less than Rs. 400/Cylinder
    Now Gas has gone up to Rs.800/-
    WHERE IS THEIR EMPTY GAS CYLINDERS?

    BHAJIE BHAKTHS STILL HAPPY GO LUCKY?

    DisAgree Agree [35] Reply Report Abuse

  • Deepak, mangaluru

    Mon, May 14 2018

    BHAKTS are happy whatever BJP do..... Its like VARADANA for bhakth.

    DisAgree [2] Agree [47] Reply Report Abuse

  • sri_elder, karkala

    Mon, May 14 2018

    Jai ho Bjp... Dont worry even though if you make it 300 Rupees we will pay the money from our pocket..

    Jai Ho BJP

    DisAgree [39] Agree [4] Reply Report Abuse

  • David Pais, Mangalore

    Mon, May 14 2018

    fundoo bhakt received 15-20 jumla from chaiwala cow boy.

    DisAgree [2] Agree [40] Reply Report Abuse

  • PenMightierThanTheSword!, Mangalore

    Mon, May 14 2018

    sri_elder, karkala — you seriously need to get a life rather than rattling and ranting bhaktshit all the time!

    DisAgree [1] Agree [19] Reply Report Abuse

  • Deepak, mangaluru

    Mon, May 14 2018

    Sriii......
    Don't worry congress will make 400 for you in 2019..... please support don't go for strike. when BHAKTHS like you are ready to pay from your pocket.

    DisAgree [1] Agree [9] Reply Report Abuse

  • Naresh Shenoy, Mangalore

    Mon, May 14 2018

    Boda BJPeeeeee govt

    DisAgree [2] Agree [42] Reply Report Abuse

  • I LOVE MY INDIA, UDUPI

    Mon, May 14 2018

    Modi Doesn't have any clue like how to control the price.. modi is unfit for the post of PM.
    modi has already sold india to his rich friends, the truth is the mod's rich business mans are ruling the country, and feku is simply roaming country to country as he doesn't know what to do with the price hike,,, so he is just escaping from the issues by his foreign tours.

    ACHE DIN WILL COME TO KARNATAKA IF BJP LOSES THE KARNATAKA ELECTION.

    DisAgree [6] Agree [61] Reply Report Abuse

  • jeevan, kudla

    Mon, May 14 2018

    Mohan, Manipal
    Foreign tour of modiji and cancer treatment charges of Sonia is immaterial here ..May you explain why congi govt hiked 8% power tariff after election ???

    DisAgree [48] Agree [2] Reply Report Abuse

  • Mohan, Manipal

    Mon, May 14 2018

    Jeevan

    They have not increased since congress cmae to power one time increase is ok
    Now you tell me Why chaiwala spent so much money on foreign tour..
    Why your chaiwala increased petrol price again after karnataka electiondo you have any answer for that ????

    DisAgree [2] Agree [43] Reply Report Abuse

  • roy pinto, mangalore

    Mon, May 14 2018

    ASK MODI WHY HE WISH PAKISTAN PM FOR HIM BIRTHDAY EVEN HE PLANNED ATTRACT ON 26/11 . WHY BJP PARTY AND PAKISTAN ARE CLOSE TO EACH OTHER .......
    SPECIALLY PM MODI ?????? HE IS ANTI INDIAN .....

    DisAgree Agree [35] Reply Report Abuse

  • Sunil Kamath, Manipal

    Mon, May 14 2018

    Jeeevan

    Chi CHi Tu tu uneduacted chaiwala cannot control price rise

    DisAgree Agree [31] Reply Report Abuse

  • Harish, Kadaba

    Mon, May 14 2018

    Bring fuel under gst

    DisAgree [2] Agree [41] Reply Report Abuse

  • Pawan Kamath, Manipal

    Mon, May 14 2018

    Boda Bjpeeeeeeeeeeeeeeeeeeeeeeeeeeeee govt.....

    They are elegible for pakoda business

    DisAgree Agree [33] Reply Report Abuse

  • Vignesh, Mangalore

    Mon, May 14 2018

    Boda undu BJPeeeeeeeeeee govt.

    BJPeeeeeeeeee is completing 4 years since after Petrol price is almost double compare to previous govt
    Inflation reached sky rocket
    Everywhere unemployment
    No acche din
    All U Turn

    DisAgree Agree [25] Reply Report Abuse

  • geoffrey, hat hill

    Mon, May 14 2018

    Rupee is on a free fall against $, Feku has no clue what's happening, not that he cares even if he does. His tall claim that he's saved 1 lakh crore odd due to GST sounds silly.

    DisAgree [1] Agree [32] Reply Report Abuse

  • Anil, Dubai

    Mon, May 14 2018

    They have some target, and that target should reach before year 2019… (after year 2019 they can’t make it)..

    DisAgree Agree [29] Reply Report Abuse

  • RAKESH SHETTY, Mangalore

    Mon, May 14 2018

    HOPE NEW CM YEDDIJI WILL REDUCE PETROL TO 50 RUPEES PER LITRE.

    DisAgree [40] Agree [2] Reply Report Abuse

  • Aris, Mangalore /Kuwait

    Mon, May 14 2018

    Hahahahhahahahahahhaha.....

    DisAgree [1] Agree [22] Reply Report Abuse

  • Naresh Shenoy, Mangalore

    Mon, May 14 2018

    Shetre

    It seems you lost faith on chaiwlaaaaaaaaaaaa cutting chaiiaaaaaaaaaaa

    DisAgree Agree [30] Reply Report Abuse

  • jeevan, kudla

    Mon, May 14 2018

    Roy Pinto, Mangalore
    Why Karnataka govt hiked power tariff by 8%....???
    Is it gift of sidda and Raga ???

    DisAgree [40] Agree [3] Reply Report Abuse

  • Mohan, Manipal

    Mon, May 14 2018

    It was Modi bhagya since he sent lot of money for his foreign tours and fake promises and 15 lakhs suit everyday

    DisAgree [1] Agree [43] Reply Report Abuse

  • roy pinto, mangalore

    Mon, May 14 2018

    STILL YOUR BLIND PLEASE OPEN EYE FORGET MODI FROM TOMORROW AND KEEP ONE PHOTO OF RAHUL GANDHI .
    ALL WILL BE PERFECT FOR YOU AND OTHER BLIND BAKHTS .......

    DisAgree [2] Agree [19] Reply Report Abuse

  • Hari Prasad, Mangalore

    Mon, May 14 2018

    Chi Chi Tu tu BJPeeeee culture

    DisAgree Agree [11] Reply Report Abuse

  • ray, Mangalore

    Mon, May 14 2018

    bhai itna sannata kyun hai!!!

    DisAgree [1] Agree [9] Reply Report Abuse

  • saquib, Dammam

    Mon, May 14 2018

    bhakts were blind now they have become deaf and dumb

    DisAgree Agree [13] Reply Report Abuse

  • Allen, Mangaluru

    Mon, May 14 2018

    Certified Jumlebaaz Chaiwala sarkaar 😉

    DisAgree [1] Agree [24] Reply Report Abuse

  • jeevan, kudla

    Mon, May 14 2018

    Even Karnataka govt hiked power tariff by 8%.....
    Now kai sevaks run behind candles...

    DisAgree [25] Agree [3] Reply Report Abuse

  • Jitesh Kumar, Kudla

    Mon, May 14 2018

    Dont worry spend some money for Power Hike or migrate to himalaya

    DisAgree Agree [18] Reply Report Abuse

  • Shashidara, Kudla

    Mon, May 14 2018

    Jai ho modiji
    Jai ho RSS
    Jai Ho Chaiwala
    Jai Ho Peee janata party

    DisAgree [3] Agree [17] Reply Report Abuse

  • Rashad, Dxb

    Mon, May 14 2018

    Bhakth will be always andh bhakth.

    DisAgree [2] Agree [31] Reply Report Abuse

  • jeevan, kudla

    Mon, May 14 2018

    Even Karnataka govt hiked the electricity charges...

    DisAgree [29] Agree [5] Reply Report Abuse

  • roy pinto, mangalore

    Mon, May 14 2018

    THIS IS WHAT FEKU MODI IS FIT FOR USELESS PM LOOT PEOPLE OF INDIA .
    ALL THIS MONEY SENT FOR BJP CAMPAIGN HAVE TO RECOVER NA SO THIS PRICE HIKED .
    AND STILL BLIND BJP SUPPORTER THING THEY WHAT BJP. WHEN THIS BLIND PEOPLE WILL OPEN EYE AND SEE ..............
    WAKE UP BLIND BJP SUPPORTER AND SPEAK AGAINST YOUR PARTY AND SUPPORT TRUE PARTY LIKE CONGRESS.........

    DisAgree [3] Agree [26] Reply Report Abuse

  • Rathan, Mangalore

    Mon, May 14 2018

    What about the power tariff in the state which will be hiked within a day or two even though the hike was due in March 18 ?
    Aap kare tho chamtkar hum kare tho balthkar ?

    DisAgree [19] Agree [3] Reply Report Abuse

  • Sha, Mangalore

    Mon, May 14 2018

    Bhaktoo kuch bolo... Itney chup kyu ho!!

    DisAgree [1] Agree [18] Reply Report Abuse

  • Rakesh pinto, MANGALURU

    Mon, May 14 2018

    Modi ji what game you are playing? are think you are owner of nation? One day your name will vanish and even kids wont take it and remember you as PM.

    DisAgree [6] Agree [38] Reply Report Abuse

  • nazni, mangalore

    Mon, May 14 2018

    Arrey dont say any thing....u will be desh drohi, pakistani, terrorist etc .. Kuda imbek nana 5 varsha korodge... encha ???

    DisAgree [4] Agree [36] Reply Report Abuse

  • Dr. Haneef Shabab, Bhatkal

    Mon, May 14 2018

    Bhaiyooooo Bhainoooooo !!! Yeh teil ka khel hai, teil ka khel ! isko samajhna hoga.
    aap loooogggg mujhey pakad nahi saktey....my Modi hoooN... ser sey paw tak teil laga k aaya hoooN !

    DisAgree [4] Agree [31] Reply Report Abuse

  • Naveen, Kulshekar Mangalore

    Mon, May 14 2018

    This was expected before election..
    This is the gift from our PM .

    DisAgree [4] Agree [38] Reply Report Abuse

  • SMR, karkala

    Mon, May 14 2018

    BJP's recovery of election campaign in Karnataka from common man when their corporate escape with bankloot.
    Now one can assume how BJP managed 31 helicopter service to arrange his whole central leadership.

    Jai Hind

    DisAgree [2] Agree [19] Reply Report Abuse

  • Stan, Udupi/Dubai

    Mon, May 14 2018

    Whereas looters , fraudsters enjoying promised acche din, aam aadmi is burdened day by day. Deaf and dumb govt will be booted out in 2019 elections.

    DisAgree [2] Agree [17] Reply Report Abuse

  • Rathan, Mangalore

    Mon, May 14 2018

    Stan
    First see who will be booted out tomorrow then talk about booting out in 2019

    DisAgree [13] Agree Reply Report Abuse

  • BRNLS BKT, MANGALORE

    Mon, May 14 2018

    THANK YOU MODIJI

    DisAgree [2] Agree [15] Reply Report Abuse

  • Af,,, Mangalore

    Mon, May 14 2018

    As per my observation those who have nothing and only showing as if they have everything these people are only supporting BJP and Modi, they are called bakths
    other wise well educated ,those who understand what is happening day to day in the country will not support aur chants Modi Modi.

    DisAgree Agree [21] Reply Report Abuse

  • Praveen, Mangalore

    Mon, May 14 2018

    Cost of Input raising??? how how?

    when Crude oil was US$ 120, petrol price was Rs 58/-

    Now Crude Oil is US $ 70/- and petrol price is Rs 74/-

    Modi govt fooling Citizens....allowing corporate companies to loot the nation...

    DisAgree [2] Agree [23] Reply Report Abuse

  • vasu, mangalore

    Mon, May 14 2018

    Without any substance criticizing Modi ..

    Inflation is very low ,since the government managed the petrol prices very well.

    DisAgree [17] Agree [1] Reply Report Abuse

  • Harold D'cunha, Mangalore, India.

    Mon, May 14 2018

    Gift by BJP government. Now onward, all out development ...... for the politicians.

    DisAgree [2] Agree [23] Reply Report Abuse

  • Satya, Mangalore

    Mon, May 14 2018

    The hidden game of this useless central government now exposed. Only sucking the blood of its citizens

    DisAgree [2] Agree [24] Reply Report Abuse

  • Mohandas, Shirva

    Mon, May 14 2018

    This was expected before election. Andh bhakths got gift from fake PM.

    DisAgree [4] Agree [52] Reply Report Abuse

  • John, mangalore

    Mon, May 14 2018

    This is how the government fools the public @ the time of election!

    DisAgree [4] Agree [55] Reply Report Abuse

  • Af,,, Mangalore

    Mon, May 14 2018

    MODI: Mahan sullugara, people now also pls understnad his fake and bundle bashans ,

    DisAgree [5] Agree [62] Reply Report Abuse

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Title : Karnataka polls over; petrol, diesel prices hiked after 19-day hiatus


 
 
 
 

 
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