Diesel price touches record high

New Delhi, Aug. 28: Petrol prices on Tuesday crossed the ` 78 per litre mark in Delhi for the first time in more than two- and- halfmonths, while diesel continued to scale new highs.

Petrol price was hiked by 14 paise and diesel by 15 paise, according to price notification of stateowned fuel retailers.

The increase pushed up the petrol price past ` 78 for the first time since June 3. It now costs ` 78.05 a litre in Delhi. In Mumbai, it is at ` 85.47.

Diesel rates scaled a new high of ` 69.61 per litre. In Mumbai, it costs ` 73.90.

Fuel prices in Delhi are the cheapest in all metros and most of state capitals due to lower sales tax or VAT.

Diesel prices hit their highest level, crossing the previous peak of ` 69.31 a litre reached on May 29.

Petrol rates are, however, lower than the peak hit on May 29 when they touched ` 78.43 a litre in Delhi and ` 86.24 in Mumbai.

Fuel prices have been on the rise since August 16 after the rupee dipped to its lowest value against the US dollar. The domestic unit hit a record low of 70.32 in early trade that day. Petrol price has risen by ` 0.91 a litre in Delhi in last 13 days. Diesel rates have gone up by ` 0.89 per litre since then. DIESEL RATES scaled a new high of ` 69.61 per litre. In Mumbai, it costs ` 73.90. It hit the highest, crossing the previous peak of ` 69.31 a litre reached on May 29. State- owned oil firms had in mid- June last year dumped the 15- year practice of revising rates on 1st and 16th of every month in favour of daily price revisions.

Global investors believe that supply is likely to fall short of demand. “We were of the view earlier that we are expecting prices to edge a bit lower over the rest of this year, but I struggle to see that,” said ING commodities strategist Warren Patterson.