Oil Companies hiked the price of petrol and diesel by 40 paise per lt and 45 paise per lt.
During the last consecutive four days the price has rised by Rs2.14 and Rs2,23 per litre for petrol and diesel respectively.
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Since March, the government has hiked excise duty on both the fuels twice. On March 14, hiked excise duty on petrol and diesel was increased by ₹3 per litre each and on May 6, tax on petrol was increased by ₹10 per litre and ₹13 a litre on diesel.
However, it did not led to an increase in retail prices as the hike in taxes was offset by a massive fall in crude oil rates due to global lockdown.
According to a report, the gap between cost and sale price of petrol and diesel for OMCs had gone up to ₹4-5 per litre last week, making a price hike imminent. Crude oil rates have almost gone double in a month.
After gaining nearly 1 per cent yesterday, Brent crude oil futures were trading below 41 dollar a barrel in the morning today amidst concerns of superfeit in the market.
The Company Goldman Sachs has increased its 2020 forecast for Brent to $40.40 a barrel but has clearly warned that prices are likely to pull back in the coming weeks because of demand uncertainty and inventory overhang.
OPEC group and its allies have already agreed to extend record cuts of 9.7 million barrels per day.