Diesel prices set to cross Rs. 70 a litre

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Prices of petrol and diesel were on Wednesday hiked again for the third consecutive day, as petrol price cross Rs 75 in the national capital while diesel was retailing at Rs 66.57.

Petrol and diesel prices were raised on Monday after an unofficial 19-day freeze that mysteriously melted no sooner than the Karnataka polls had ended.

With the daily price revision of automotive fuels restarting on Monday after a 19-day hiatus due to Karnataka polls, petrol prices reached almost five-year high while diesel prices hit a new all-time high in Delhi.

Petrol prices in other metros too were at a new high on Tuesday - Rs 77.65 in Kolkata, Rs 82.79 in Mumbai and Rs 77.77 in Chennai, according to Indian Oil Corporation.

Diesel price in Kolkata: Diesel price here was valued at Rs 69.11 per litre higher by 21 paisa as against previous price of Rs 68.90 per litre.

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Fuel prices were last hiked 19 days ago.

Oil prices for June delivery was trading lower by a similar margin at Rs 4,846 per barrel with a business volume of 266 lots.

The Congress leader P Chidambaram tweeted on Monday that the recent "interval" has coincided with Karnataka elections.

There is, however, some good news for you as after rising consistently crude oil prices fell on Wednesday on reports that there would be ample supply despite a cut in oil production by OPEC countries and United States sanctions against Iran, which is a major crude oil export country. Refiners add insurance, a few other charges as well as excise duty, state Value Added Tax (VAT) and Dealers commission to global fuel rate to determine the retail price. Today, diesel prices were increased in the range of 21 paisa to 23 paisa per litre. He also added the freeze in fuel prices by all the three OMCs was not synchronized nor was it an attempt at cartelization and explained that OMCs do have discretionary powers when it comes to pricing of fuels. The government has since 2014 increased excise duty on petrol and diesel 10 times taking away the gains arising from falling crude prices.

The price of fuel is expected to skyrocket past R15 per litre. More taxes on petrol and diesel, more burden on the consumer.