Diesel price hiked again, no change in petrol
Diesel prices were again increased by 24 to 26 paise per liter on Monday. This is the third increase after state-owned oil companies ended a three-week hiatus in rates following the highest rise in international oil prices since 2018. However, petrol prices remained unchanged for the 22nd consecutive day.
Diesel price in Delhi is Rs 89.07 per liter after a hike of 25 paise. Petrol is being sold at Rs 101.19 per litre. After the increase of 27 paise in Mumbai, one has to pay Rs 107.26 for petrol and Rs 96.68 for diesel.
The price of 1 liter of petrol in Chennai is Rs 98.96. On Sunday, the price of one liter of diesel was Rs 93.69 per litre. Petrol in Kolkata is being sold at Rs 101.62 per liter while diesel at Rs 92.17 per liter.
Fuel prices are hovering at record highs due to 41 increase in its retail rates since April this year. It dropped on a few occasions but remained largely stable.
On Sunday, global benchmark Brent crude rose above $78 a barrel. Oil rates are up 2 percent for the week and this is the fifth weekly gain. Since September 5, when the prices of both petrol and diesel were revised, the price of petrol and diesel in the international market is around $6-7 per barrel higher than the average prices during August.
As per the pricing formula adopted by the oil companies, the rates of petrol and diesel are to be reviewed and revised by them on a daily basis. The new prices have come into effect from 6 am.
The daily review and revision of prices is based on the average price of the benchmark fuel in the international market and foreign exchange rates over the past 15 days. However, volatility in global oil prices has prevented OMCs from following this formula in its entirety and revisions are now being carried out with longer intervals. It has also prevented companies from increasing fuel prices whenever there is a mismatch between the fuel delivered globally and the pump price of the fuel.
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