Fuel prices, OMCs, Petrol
After hitting new highs a day earlier, fuel prices rose once again on Tuesday taking petrol rates to cross Rs 100 per litre mark in several cities across the country.
The pump prices of petrol and diesel increased by 26 paise and 23 paise per litre to Rs 94.49 and Rs 85.38 per litre respectively in Delhi on Tuesday.
This is the second consecutive increase in fuel prices in as many days. Petrol and diesel prices had risen up to 29 paise per litre even on Monday.
In the city of Mumbai, where price of petrol crossed Rs 100 mark for the first time on Saturday, the fuel price rise again on Tuesday by about 25 paise per litre has taken it to a new high of Rs 100.72 per litre. Diesel price also increased in the city by 24 paise per litre to reach Rs 92.69 a litre, the highest among metros.
Across the country as well petrol and diesel prices increased on Tuesday but the quantum varied depending on the level of local taxes in different states.
Mumbai is not the only city to have unique distinction of petrol breaching the Rs 100 pet litre mark. Thane reached the mark few days back while few other cities in Rajasthan (including Jaipur) Madhya Pradesh and Maharashtra, having the highest VAT levels on auto fuels in the country, have already been selling normal petrol for over Rs 100 a litre for the past several days.
Premium petrol prices have already crossed the Rs 100 per litre mark in the city and other parts of the country through increase in the retail rates in the month of January and February.
With Tuesday’s price rise, fuel prices have now increased on 17 days and remained unchanged on 15 days since May 1. The 17 increases have taken up petrol price by Rs 4.09 per litre in Delhi. Similarly, diesel price has increased by Rs 4.66 per litre in the national capital.
Under daily price revision, OMCs revise petrol and diesel prices every morning benchmarking retail fuel prices to a 15-day rolling average of global refined products’ prices and dollar exchange rate. However, in a market where fuel prices need to be increased successively, oil companies this month have been holding back price rise on few days before starting the process all over again.
With global crude prices rising again to around $70 a barrel mark, OMCs may have to keep revising prices upwards for some more time.