A hike of Rs 4 per litre in petrol and diesel prices could be in the pipeline if state-owned fuel retailers go back to pre-Karnataka election margin levels, according to brokerage firms.<\/p>\n
As soon as Karnataka elected a new state government, state-owned Indian Oil Corp. Ltd, Hindustan Petroleum Corp. Ltd (HPCL) and Bharat Petroleum Corp. Ltd (BPCL) on Monday ended a 19-day break on hiking petrol and diesel prices and switched to the practice of changing rates on a daily basis.<\/p>\n
Since then petrol price has risen by 69 paisa a litre, including a 22 paisa hike effected Thursday that took rate in Delhi to Rs75.32, the highest in almost five years. Diesel prices have gone up by 86 paisa a litre, including 22 paisa increase on Thursday that took the rate to their highest-ever of Rs66.79 a litre in Delhi.<\/p>\n
\u201cOur computation suggests that downstream oil marketing companies (OMCs) are required to increase retail prices of diesel by a steep Rs3.5-4 a litre and petrol by Rs 4-4.55 per litre in the coming weeks to earn normative gross marketing margins of Rs2.7\/litre,\u201d Kotak Institutional Equities said.<\/p>\n
The price hike projection is based on the assumption that global prices of diesel, petrol and rupee-dollar rate remain stable from hereon. \u201cWe note that the lack of price hikes over the past three weeks, before Karnataka elections amid a sharp increase in global crude\/product prices, has resulted in sharp moderation in gross marketing margins to around Rs0.5-0.7 a litre,\u201d it said.<\/p>\n
ICICI Securities had said in a report last week that auto fuel net marketing margins were struggling at Rs0.31 a litre due to the decision to defer price hike after April 24. OMCs returned to daily price change from May 14.<\/p>\n
The benchmark international rate for petrol, used for revising the rate on April 24, had shot up from $78.84 per barrel to $82.98 on May 14. It has further risen to $83.30, indicating larger daily price hikes would be needed to level retail price with cost. Benchmark international diesel rates during this period have climbed from $84.68 per barrel to $88.93. Also, the rupee has weakened to Rs67.06 per US dollar from Rs66.62, making imports costlier.<\/p>\n","protected":false},"excerpt":{"rendered":"
A hike of Rs 4 per litre in petrol and diesel prices could be in the pipeline if state-owned fuel retailers go back to pre-Karnataka election margin levels, according to brokerage firms. As soon as Karnataka elected a new state government, state-owned Indian Oil Corp. Ltd, Hindustan Petroleum Corp. Ltd (HPCL) and Bharat Petroleum Corp. […]<\/p>\n","protected":false},"author":1,"featured_media":31507,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"inline_featured_image":false,"footnotes":""},"categories":[410],"tags":[],"class_list":["post-31506","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-business"],"_links":{"self":[{"href":"https:\/\/blastingskyhawk.com\/english\/wp-json\/wp\/v2\/posts\/31506","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/blastingskyhawk.com\/english\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/blastingskyhawk.com\/english\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/blastingskyhawk.com\/english\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/blastingskyhawk.com\/english\/wp-json\/wp\/v2\/comments?post=31506"}],"version-history":[{"count":1,"href":"https:\/\/blastingskyhawk.com\/english\/wp-json\/wp\/v2\/posts\/31506\/revisions"}],"predecessor-version":[{"id":31508,"href":"https:\/\/blastingskyhawk.com\/english\/wp-json\/wp\/v2\/posts\/31506\/revisions\/31508"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/blastingskyhawk.com\/english\/wp-json\/wp\/v2\/media\/31507"}],"wp:attachment":[{"href":"https:\/\/blastingskyhawk.com\/english\/wp-json\/wp\/v2\/media?parent=31506"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/blastingskyhawk.com\/english\/wp-json\/wp\/v2\/categories?post=31506"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/blastingskyhawk.com\/english\/wp-json\/wp\/v2\/tags?post=31506"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}