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Petrol and diesel prices have been on a tear over the last couple of weeks, and continue to climb even as global prices have begun to ease.

Fuel prices on Monday touched a new high with petrol at Rs 78.27 and diesel at Rs 69.17 in Delhi.

The Indraprastha Gas Limited (IGL) announced an increase in the prices of Compressed Natural Gas (CNG) as well, as the CNG price in the national capital was hiked by ₹ 1.36 per kg as input raw material got costlier because of rupee depreciation and rise in natural gas price. In the run-up to state elections in the southern state, the oil companies had stopped revising the petroleum prices for over a fortnight.

Therefore, from May 14 till today, diesel prices have risen by Rs 3.38 per litre each in New Delhi and Rs 3.23 per litre in Kolkata. There was a time when diesel prices were stuck in the range of Rs 50 to Rs 60 per litre, but since the start of 2018, there is no stopping the rate hikes in this crucial product.

The surge in retail prices, due to rises in the cost of crude, have prompted top producers Saudi Arabia and Russian Federation to consider boosting their output in the second half of the year. Retail prices were frozen between April 24 and May 13, when campaigning was on for the Karnataka Assembly elections. Petrol price has been hiked by Rs 3.49 per litre since May 14 and diesel by Rs 3.13 a litre. Whereas, Mumbai and Chennai saw the most hikes - by as much as Rs 3.59 per litre and Rs 3.62 per litre respectively.

This will push up the deficit of Centre, unlike states, it added. Central government puts additional tax of Rs 10 on every litre of petrol. States charge value added tax that varies from state to state. Last week, Hindustan Petroleum Chairman and MD Mukesh Kumar Surana said that the government should review their taxes.

While petrol prices were hiked by 15 paise per litre in Delhi, Kolkata, Mumbai and Chennai, diesel prices were raised by 11-12 paise per litre.

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