Petrol prices hiked again – sixth hike in a week
Highlight
- Rates have been increased across the country and vary from state to state
- This is the sixth increase in prices since the end of a long gap of four and a half months.
- Overall, petrol prices have increased by Rs 4 per liter and diesel by Rs 4.10.
On Monday, the price of petrol was hiked by 30 paise per liter and diesel by 35 paise, taking the overall increase in rates to Rs 4-4.10 per liter in the past one week. According to the price notification of the state fuel retailers, the price of petrol in Delhi will now be Rs 99.11 per liter, while the price of diesel has increased from Rs 90.42 per liter to Rs 90.77.
Rates have been increased across the country and vary from state to state based on local taxation events. This is the sixth increase in prices since the end of a four-and-a-half-month long gap in the rate revision on March 22.
In the first four occasions, prices were increased by 80 paise per liter – the sharpest increase in a day since the daily price revision was introduced in June 2017. On Sunday, the price of petrol was increased by 50 paise per liter and diesel by 55 paise.
Overall, petrol prices have increased by Rs 4 per liter and diesel by Rs 4.10.
In states such as Uttar Pradesh and Punjab, prices were stable since November 4, ahead of the assembly elections – a period during which the price of raw materials (crude oil) rose by around USD 30 per barrel.
The revision of rates was expected soon after the counting of votes on March 10, but was postponed by a couple of weeks.
The increase in retail price is huge with crude oil prices rising from around USD 82 per barrel to USD 120 during a span of 137 days, but the state-owned fuel retailer Indian Oil Corporation (IOC), Bharat Petroleum Corporation Ltd. (BPCL) and Hindustan Petroleum Corporation Limited (HPCL) is passing on the necessary augmentation in phases.
Moody’s Investors Services said last week that the state’s retailers in total lost nearly USD 2.25 billion (Rs 19,000 crore) in revenue for maintaining petrol and diesel prices during the election period.
According to Kotak Institutional Equities, oil companies “will need to increase the prices of diesel by Rs 13.1-24.9 per liter and on gasoline (petrol) by Rs 10.6-22.3 per litre.”
Crisil Research said that if the average crude oil price rises to US$110, the average price would be Rs 9-12 per barrel for a complete pass-through of crude oil and an increase of Rs 15-20 per litre. liters will need to be increased. -120.
India is 85 per cent dependent on imports to meet its oil needs and hence retail rates are adjusted according to global movement.
(with inputs from PTI)
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