Soon after elections, fuel price seeks new heights

Petrol and diesel prices have increased in the country for the third day in a row. Petrol price was hiked by 25 paise per litre and diesel price by 30 paise per litre in various cities on Thursday.

In Kochi city, petrol price rose by 23 paise and diesel by 30 paise. With this, petrol price touched Rs 91.09 per litre from the previous Rs 90.86 on Wednesday. Diesel price jumped from Rs 85.51 to Rs 85.81.

In Kozhikode city, petrol price is Rs 91.40 and diesel price is Rs 86.12. Within three days, there was a hike of 53 paise in petrol and 67 paise in diesel price. The price is likely to go up further.

The oil companies had stopped increasing price for a few days considering the assembly election in six states. Meanwhile, they also decreased the fuel price on April 15.

However, they again increased the price pointing out the crude oil price in international market after the election result was announced.

The fuel price is at record high in many states including Kerala. As Covid restrictions are imposed in many places in the country, fuel consumption is comparatively low.

The crude oil price in international market and the dollar exchange rate are the major factors that decide the fuel price in India.

The increase in oil consumption in USA and drop in exchange rate resulted in the crude oil price hike. Current rate is over 68 dollars per barrel.