Fuel prices have experienced a steep hike of Rs 2.58 per litre for petrol and Rs 2.26 for diesel with effect from May 31. This hike has taken the prices of automotive fuel to their highest level in the past year.
With the previous hike in fuel prices coming as recently as May 17, this is the second time oil companies have raised the price of fuel within a month. In Delhi, Petrol will now cost Rs 65.60 per litre while diesel will cost Rs 53.93 per litre. Fuel being costlier in Mumbai, customers will have to shell out Rs 70.18 per litre for petrol and Rs 59.21 per litre for diesel.
Oil companies were given the liberty to fluctuate fuel prices according to global price movement, when fuel prices were deregularised by the government in 2014. IOC, BPCL and HPCL revise rates of the fuel on 1st and 16th of every month. For this hike, IOC has blamed the movement in the international oil market and the fluctuation in INR-USD exchange rate. The company released a statement saying, "The current level of international product prices of petrol and diesel and INR-USD exchange rate warrant increase in price of petrol and diesel, the impact of which is being passed on to the consumers with this price revision.”