Petrol, diesel prices may be hiked by R 4 per litre

New Delhi, May 17: A R 4 per litre increase in petrol and diesel prices is in the offing if state-owned fuel retailers are to return to pre-Karnataka poll hiatus margin levels, brokerage firms said.
No sooner had Karnataka polled to elect a new state government, state-owned Indian Oil Corp (IOC), Hindustan Petroleum Corp Ltd (HPCL) and Bharat Petrol-eum Corp Ltd (BPCL) on Monday ended a 19-day hiatus in revising petrol and diesel prices and reverted to the practices of changing rates on a daily basis.
Since then petrol price has risen by 69 paisa a litre, including a 22 paisa hike effected today that took rate in Delhi to R 75.32, the highest in almost five years. Diesel prices have gone up by 86 paisa a litre, including 22 paisa increase today that took the rate to their highest ever of R 66.79 a litre in Delhi.
“Our computation suggests that downstream oil marketing companies (OMCs) are required to increase retail prices of diesel by a steep R 3.5-4 a litre and gasoline (petrol) by R 4-4.55 per litre in the coming weeks to earn normative gross marketing margins of R 2.7/litre,” Kotak Institutional Equities said in a report. (PTI)